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Economic news
13.05.2025

U.S. annual inflation unexpectedly eases in April

The Labor Department reported on Tuesday that the U.S. consumer price index (CPI) increased 0.2 per cent m-o-m in April, following an unrevised 0.1 per cent m-o-m slip in the previous month. 

Over the last 12 months, the CPI surged 2.3 per cent y-o-y, slightly decelerating from an unrevised rise of 2.4 per cent y-o-y reported for the period ending in March. This marked the weakest 12-month increase since February 2021 (+1.7 per cent y-o-y).

Economists had predicted the U.S. CPI to jump 0.3 per cent m-o-m and 2.4 per cent y-o-y.

According to the report, a 0.3 per cent m-o-m gain in the index for shelter accounted for more than half of the monthly increase in the headline indicator. In addition, the energy index went up 0.7 per cent m-o-m. In contrast, the index for food inched down 0.1 per cent m-o-m in April.

The core CPI, excluding volatile food and fuel costs, advanced 0.2 per cent m-o-m in April, after an unrevised 0.1 per cent m-o-m uptick in the previous month.

In the 12 months through April, the core CPI soared 2.8 per cent, at a similar pace as in the 12-month periods ending in March. 

Economists had expected the core CPI to gain 0.3 per cent m-o-m and 2.8 per cent y-o-y last month.

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