The Consumer Price Index increased 0.3% (2.0% y/y) during April following a 0.4% March gain. A 0.4% rise had been expected in the Action Economics Forecast Survey. The CPI excluding food & energy improved 0.1% (2.1% y/y) for the third consecutive month. A 0.2% rise had been expected.

Higher energy prices continued to lead the overall CPI higher. Their 2.9% jump (1.7% y/y) followed a 3.5% March rise. The strength was again led by gasoline prices which rose 5.7% (3.1% y/y). Fuel oil costs also strengthened 1.3% (-0.9% y/y). Electricity prices held steady (0.6% y/y), but natural gas prices declined 0.8% (-1.9% y/y).

Food prices weakened 0.1% last month (+1.8% y/y) after a 0.3% rise. The decline was paced by a 3.2% drop in egg prices (-16.4% y/y). Fruit & vegetable prices fell 0.9% (+2.2 y/y). Nonalchoholic beverage prices also fell 0.9% (+2.2% y/y). Meat, poultry & fish prices were little changed both m/m and y/y, as the cost of fish & seafood fell sharply for a second straight month (+1.3% y/y). Dairy prices also were weak and posted a minimal 0.1% gain (0.3% y/y).

Service prices improved 0.3% (2.8% y/y), the same as in March. Shelter costs rose an accelerated 0.4% (3.4% y/y) as the cost of lodging away from home strengthened 1.6% (4.1% y/y). Rents of primary residences increased 0.4% (3.8% y/y) and the owners' equivalent rent of primary residences gained a steady 0.3% (3.4% y/y). Recreation services prices improved 0.2% (3.1% y/y) and medical care service prices rose 0.2% (2.3% y/y). Education & communication service costs increased 0.2% (1.5% y/y) as tuition costs likewise gained 0.2% (3.4% y/y). The cost of public transportation rose 0.3% (-1.2% y/y) following many months of decline.

Core goods prices fell 0.3% (-0.2% y/y), down for the third consecutive month. Education & communications goods prices fell 1.1% (-5.0% y/y), and apparel prices were off 0.8% (-3.0% y/y). Furniture & bedding prices declined 0.7% (+1.6% y/y) and recreation product prices fell 0.3% (-1.7% y/y). Sporting goods prices weakened 0.9% (+0.1% y/y). Offsetting these declines, medical care product prices surged 0.9% (0.2% y/y) and appliance prices rose 0.5% (3.3% y/y) following two months of decline. New vehicle prices gained 0.1% (1.2% y/y) but used car & truck prices fell 1.3% (+0.8% y/y).

Also released today were figures on real earnings. The increase in the CPI caused real average hourly earnings to fall 0.1% last month (+1.2% y/y) after a 0.3% decline during March.

The consumer price data can be found in Haver's USECON database with additional detail in CPIDATA. The Action Economics survey figure is in the AS1REPNA database.