U.S. consumer inflation cooled slightly last month after three elevated readings, according to the Associated Press.
Prices rose 0.3% from March to April, the Labor Department said today, down slightly from 0.4% the previous month. Measured year-over-year, inflation ticked down from 3.5% to 3.4%, and a measure of underlying inflation, which excludes volatile food and energy costs, also eased in April.
Economists are divided over whether the high inflation figures in recent months reflect a re-acceleration in price growth or are merely echoes of pandemic-related price distortions. While auto insurance has soared 22% from a year ago, for example, that surge may reflect factors specific to the auto industry.
Stubbornly elevated apartment rents are another key factor behind persistent inflation. Though rents for new leases are rising much more slowly, consistent with pre-pandemic patterns, the earlier increases are still elevating the government’s price data.
Some economists point to steady consumer spending on restaurant meals, travel, and entertainment, categories where in some cases price increases have been elevated, likely reflecting strong demand.
