US Annual Inflation Rate Dips Below 5 Percent for 1st Time in 2 Years

Price pressures remain in the monthly inflation figures, owing to increases in housing and gasoline prices

A woman shops at a supermarket in New York City on Dec. 14, 2022. Yuki Iwamura/AFP via Getty Images

The U.S. annual inflation rate slowed to 4.9 percent in April, down from 5 percent in March, according to the Bureau of Labor Statistics. This is slightly lower than the consensus estimate of 5 percent. This represented the 10th consecutive monthly drop in the annual inflation rate.

However, the consumer price index (CPI) rose by 0.4 percent month-over-month, up from 0.1 percent in March. The huge jump in the monthly CPI was largely driven by increases in shelter costs, gasoline, and used vehicles.