Economics
U.S. Consumer Prices Trail Estimates, Testing Powell's View
- Overall and core CPI in April both rise less than forecast
- Declines in used-car and apparel prices drag down index
Photographer: John Taggart/Bloomberg
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A key measure of U.S. consumer prices rose by less than expected in April on lower used-car and apparel costs, testing the Federal Reserve’s message that muted inflation will prove transitory while giving President Donald Trump more ammunition to argue for an interest-rate cut.
The core consumer price index, which excludes food and energy, rose 0.1% from the prior month, missing estimates, and 2.1% from a year earlier as forecast, according to a Labor Department report Friday. The broader CPI rose 0.3% monthly and 2% annually, with both figures less than projected.