US CPI increases 0.3% in April

Consumer goods and services prices increased 0.3% in April, according to the Bureau of Labor Statistics, principally due to higher oil prices and housing costs.

However, the increase was below last month's and short of the 0.4% forecast by economists.

The so-called core rate of inflation, which strips out volatile food and energy prices, was up 0.03% on March's reading for the smallest rise in four months.

The report also showed inflation rising 3.4% year-on-year, down slightly from 3.5% in the prior month, while core CPI climbed 3.6% in the 12 months ended April, down from 3.8% in the prior month for the lowest reading since April 2021 but well above the Federal Reserve's target of 2% annual inflation.

Central bankers have previously indicated that stubborn inflation will likely delay any reductions in US interest rates until later in 2024.

Reporting by Iain Gilbert at Sharecast.com