CPI Increases Despite Lower Energy Prices

The Consumer Price Index increased 0.1 percent in April on a seasonally adjusted basis, as further declines in energy was offset by an increase in all items less food and energy, the U.S. Bureau of Labor Statistics reported. Over the last 12 months, the CPI declined 0.1 percent SAAR — the third year-over-year decline in 2015.

CPI

The index for energy fell 1.3 percent month-over-month, driven by an 8.4 percent decline in fuel oil and a 1.7 percent decline in gasoline. On a yearly basis, the energy index fell 18.9 percent SAAR.

Non-energy items drove the monthly increase, as all items less food and energy increased 0.3 percent from March. The largest monthly gains were a 0.9 percent increase in medical care services, a 0.6 percent increase in used cars and trucks and a 0.3 percent gain in shelter. In contrast, the index for apparel and airline fares declined in April.

The food index, however, was flat on a monthly basis as a 0.2 percent increase in food away from home was offset by a 0.2 percent decline in food at home. On a yearly basis, the index for food increased 2.0 percent attributable to increases in both food at home and food away from home.