United States Inflation Rate

The annual inflation rate in the US eased to 2.3% in April 2025, the lowest since February 2021, from 2.4% in March and below forecasts of 2.4%. Energy cost declined 3.7%, more than a 3.3% fall in March. Prices for gasoline (-11.8% vs -9.8%) and fuel oil (-9.6% vs -7.6%) decreased at a faster pace while natural gas prices soared (15.7% vs 9.4%). Inflation also slowed for food (2.8% vs 3%) and transportation (2.5% vs 3.1%) and steadied for shelter (4% vs 4%). On the other hand, prices increased faster for used cars and trucks (1.5% vs 0.6%) and new vehicles (0.3% vs 0%). Compared to the previous month, the CPI rose 0.2%, rebounding from a 0.1% fall in March but below forecasts of 0.3%. Shelter costs rose 0.3% and accounted for more than half of the all items monthly increase. Energy prices were also 0.7% up as increases in the natural gas index and the electricity index more than offset a decline in gasoline. Meanwhile, annual core inflation rate steadied at 2.8% as expected.