Inflation Remains High but Shows Signs of Easing, Fannie Mae Reports

May

Originally published on May 12, 2023, by Nathaniel Drake for Fannie Mae.

Key Takeaways:

The Consumer Price Index (CPI) increased 0.4 percent in April, an acceleration of three-tenths from March, according to the Bureau of Labor Statistics (BLS). Over the year, prices rose 4.9 percent. Food prices were flat for the second straight month while energy rose 0.6 percent on higher gasoline prices. Excluding food and energy, core CPI rose 0.4 percent over the month and 5.5 percent over the year. Core goods prices, which rose 0.6 percent, reversed a trend of general cooling as used car and truck prices jumped 4.4 percent. Shelter cost inflation, while still high, was cooler than earlier in the year for the second straight month as rent was up 0.6 percent and owners’ equivalent rent (OER) increased 0.5 percent.
The Producer Price Index (PPI) increased 0.2 percent in April after a 0.4 percent decline in March, according to the BLS. Prices were up 2.3 percent compared to a year ago, the slowest annual rate since January 2021. Core PPI (less food, energy, and trade services) rose 0.2 percent over the month and 3.4 percent over the year, the slowest annual rate since March 2021.