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April CPI breakdown: Where are prices still rising the fastest?

Inflation fell slightly in April, but rising rent and gas prices kept prices painfully high for millions of Americans.

The Labor Department said Wednesday that the Consumer Price Index (CPI), a broad measure of the prices of daily necessities such as gasoline, food and rent, rose by 0.3.% From last month to April. Economists had expected a 0.4% increase from the previous month. Prices rose 3.4% from the same period last year, slowing from 3.5% in March.

Lisa Sturtevant, chief economist at Bright MLS, said: “While we have long argued that inflation remains stubbornly high, this report reinforces consumer pessimism that inflation will soon fall.” “This is new evidence that this is the case.” “While consumers are facing rising prices, rising housing costs also continue to be a major driver of overall inflation.”

Here’s a breakdown of where prices are rising and falling the fastest as Americans continue to battle sticker shock.

Inflation rate rose 3.4% in April as prices continued to rise

rent

Housing costs remained one of the biggest drivers of inflation last month. Rent increased by 0.4% in the same month, and by 5.6% compared to the same period last year.

A “For Rent” sign is posted in front of a home in Miami on December 12, 2023. (Joe Radle/Getty Images/Getty Images)

The reason why rent increases are a concern is that Rising housing costs It has the most direct and severe impact on household finances. Separate data showing how much homeowners would pay in equivalent rent if they didn’t buy a home also rose 0.4% from the previous month.

“The shelter component of the CPI has declined from its peak in 2023, with shelter inflation at 5.5% in April,” Sturtevant said. “However, unfortunately there is evidence that rents will rise in the second half of this year.”

Jamie Dimon warns that inflation, interest rates may remain high

food

Food has been the most visceral reminder of inflation for Americans, but it wasn’t until April that households found some respite.

Grocery costs fell 0.2% last month, but were 1.1% higher than the same period last year. Furthermore, compared to January 2021, before the inflation crisis began, food prices have increased by more than 21%.

Workers stock shelves in Washington, D.C.

A grocery store scene in Washington, DC, February 14, 2024. (Photo by Mostafa Bassim/Anadolu, Getty Image/Getty Images)

Egg prices plunged 7.3% in April. Consumers also prefer bread (-0.2%), chicken (-0.8%), milk (-0.8%), raw fruit (-1.7%), raw vegetables (-0.6%), and peanut butter (-1.1%). ), and coffee (-0.6%).

However, prices for other basics continued to rise last month, including cereals (2.2%), flour (3.2%), beef and veal (0.1%), ham (1.8%) and seafood (0.3%).

Americans are carrying record amounts of household debt

energy

Energy prices rose for the third straight month in April, adding to the financial pressures many households were already enduring. Prices rose 1.1% for the month, including a 2.8% rise in gasoline prices.

Amoco gas station in Washington DC

November 28, 2023 at an Amoco gas station in Washington, DC. (Photographer: Al Drago/Bloomberg via Getty Images / Getty Images)

Propane, heating oil and firewood prices rose 2.2% in April, while fuel oil rose 0.9%.

car

There is good news for Americans looking to buy a car in April.

of used car price This was a key factor in the 2022 inflation spike, which fell 1.4% last month and 6.9% year-on-year.

Prices of new cars and trucks also fell gradually in April, dropping by 0.4%. Prices decreased by 0.4% compared to the same period last year.

However, there is another problem for car owners: rising insurance premiums. Auto insurance rose 1.8% in April after rising for the previous five months. On an annual basis, prices have increased by a whopping 22.6%.

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travel and transportation

United Airlines plane taking off from San Francisco International Airport

A United Airlines plane takes off from San Francisco International Airport on June 21, 2023 in San Francisco, California. ((Photo Credit: Tayfun Coskun/Anadolu Agency via Getty Images) / Getty Images)

Airline tickets fell again in April, falling by 0.8%.

According to the data, ticket prices fell by about 5.8% compared to last year.

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