US monthly inflation slows to 2.3% in April

US consumer price index (CPI) slowed in April but ticked up on a monthly basis as higher tariffs on Chinese goods, in particular, began to take effect.

The Consumer Price Index rose 2.3% in April from a year earlier, below March’s 2.4% annual increase, the Bureau of Labor Statistics said Tuesday.

The core CPI gauge, which strips out food and energy, rose 0.2% from March, remaining at an annual rate of 2.8%, in line with Dow Jones forecasts.

On a monthly basis, however, prices rose 0.2% in April, ticking up from the 0.1% decline seen in March. Meanwhile, the monthly core inflation rate stood at 0.2%.

Energy prices (+0.7%), transportation services (+0.1%), and healthcare (+0.4%) were the key drivers of the monthly increase in the Consumer Price Index.

Shelter prices jumped 0.3% month-on-month (MoM) and 4% year-over-year (YoY) in April, while used car prices fell and new vehicle prices remained flat.

Food prices in the US fell 0.1% MoM in April after rising 0.4% the previous month.