Labor Department reports of inflation easing
(NBC, KYMA/KECY) - The Labor Department reported Wednesday that inflation fell for the tenth month in row in April, coming in just below expectations that it would remain unchanged from March.
The reports says inflation was 4.9% compared to a year ago, lower than the 5.0% rate that analysts had forecast. It's the slowest annual rise in inflation in two years. On a month-to-month basis, inflation rose 0.4%.
As in previous reports, housing costs were the biggest contributor to the monthly and yearly increase.
Compared to a year ago, shelter costs that includes renters and homeowners were up 8.1%, making up 60% of the overall rise in inflation after subtracting out food and energy prices.
While shelter costs have been persistently high for months, there are more signs that rent price increases are slowing.
Additionally, a drop in homes prices will also cool inflation.
Also contributing to the monthly bump were higher prices for used cars and trucks as well gas prices, though drivers have seen a drop in recent weeks.
Consumers did catch a break at the grocery store: inflation fell 0.2% in April compared to march, thanks to lower prices for fruits and vegetables; meats, poultry, fish, and eggs; and dairy products.
