The inflation rate fell slightly in April to a 3.4 percent annual rate.
The rate was down from 3.5 percent in March, according to new figures from the Bureau of Labor Statistics.
“The all items index rose 3.4 percent for the 12 months ending April, a smaller increase than the 3.5-percent increase for the 12 months ending March,” the BLS reported. “The all-items-less-food-and-energy index rose 3.6 percent over the last 12 months. The energy index increased 2.6 percent for the 12 months ending April. The food index increased 2.2 percent over the last year.”
The consumer price index grew by 0.3 percent in April.
The inflation report followed the Federal Reserve holding interest rates at 5.25 to 5.5 percent at the start of May. It was the sixth straight meeting for the Federal Open Market Committee to hold rates steady.
Federal Reserve Chair Jerome Powell said the committee remains committed to getting inflation down to 2 percent.
“Over the past year, as labor market tightness has eased and inflation has declined, the risks to achieving our employment and inflation goals have moved toward better balance,” Powell said. “The economic outlook is uncertain, however, and we remain highly attentive to inflation risks.
”We’ve stated that we do not expect that it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably toward 2 percent. So far this year, the data have not given us that greater confidence.”
Used vehicle prices were down 6.9 percent on the annual index, falling 1.4 percent in April.
Motor vehicle insurance continues to increase, growing another 1.8 percent in April. In the past year, motor vehicle insurance has increased by 22.6 percent.
