The Consumer Price Index (CPI) rose 2.7% on a year-over-year basis in April, down from a 2.9% gain in March. Broad-based deceleration in the headline CPI was led by food prices, services and durable goods.
The deceleration in the CPI was moderated by gasoline prices, which rose at a faster pace in April (+6.1%) than in March (+4.5%). Excluding gasoline, the all-items CPI slowed to a 2.5% year-over-year increase, down from a 2.8% gain in March.
On a monthly basis, the CPI rose 0.5% in April, mainly driven by prices for gasoline. On a seasonally adjusted monthly basis, the CPI rose 0.2% in April. Food prices lead the deceleration in the Consumer Price Index. While prices for food purchased from stores continue to increase, the index grew at a slower pace year over year in April (+1.4%) compared with March (+1.9%). Meat contributed the most to slower price growth, largely due to a base-year effect in prices for fresh or frozen beef (+4.4%) as a result of a monthly increase in April 2023 which fell out of the 12-month movement. Other contributors to the slowdown in grocery prices included other food products and non-alcoholic beverages (+2.1%), bakery and cereal products (+0.2%), fruit, fruit preparations and nuts (-0.8%) and fish, seafood and other marine products (-1.8%). From April 2021 to April 2024, prices for food purchased from stores increased 21.4%.
Price growth for food purchased from restaurants also eased on a yearly basis, rising 4.3% in April 2024 following a 5.1% increase in March. The index was unchanged month over month in April, however a 0.8% monthly increase from April 2023 fell out of the 12-month movement and put downward pressure on the index.
Gasoline prices moderate deceleration in the Consumer Price Index. Consumers paid 6.1% more at the pump year over year in April, following a 4.5% increase in March. Faster growth was driven by a 7.9% month-over-month increase in April. Higher costs associated with switching to summer blends, higher oil prices due to supply concerns and an increase in the federal carbon levy all contributed to the increase in prices.
