Inflation Cooled in April

Consumer prices in April increased by 3.4 percent compared to the year before, moderating after elevated inflation readings in the first quarter of this year and down from March’s 3.5 percent, reports The New York Times.

The slowdown will likely come as a relief to policymakers at the Federal Reserve, according to the report. Economists, however, caution that one month of optimistic data should not placate economic worries.

“I would characterize it as a small step in the right direction,” said Stephen Stanley, chief U.S. economist at Santander.

Food inflation eased slightly last month: grocery prices fell 0.2 percent after remaining flat for two consecutive months. The cost of dining out rose 0.3 percent in April. Compared to a year earlier, food inflation climbed 2.2 percent in April, the same rate it rose in March and a faster rate than before the pandemic, according to the report.

Fruit and vegetable prices declined 0.8 percent in April after increasing 0.1 percent in March, and meat, poultry, and fish prices all decreased by 0.1 percent in April after increasing by 0.6 percent the month before. Egg prices plummeted 7.3 percent last month after increasing by 3.6 percent in March and 5.8 percent in February. Economists attributed the recent surge in egg prices to persistent bird flu outbreaks across the country, according to the report. Full Story