A fading dollar rally also was seen keeping
core inflation on an upward trend. The dollar surged about 15 percent
against the currencies of the United States' main trading partners
between June last year and mid-March. It has handed back some of those
gains and is now up only 10 percent.
"If sustained, that
should help weakness in core goods prices continue to moderate," said
Ted Wieseman, an economist at Morgan Stanley in New York.
The overall CPI edged up 0.1 percent last month after increasing 0.2 percent in March. It was held back by a 1.7 percent drop in gasoline prices and no change in food prices. Gasoline prices, however, have since risen.
In the 12 months through April, the CPI fell 0.2 percent, the largest decline since October 2009, after dipping 0.1 percent in March.
Core inflation was lifted by a 0.3 percent increase in shelter costs, which followed a similar gain in March. Shelter inflation is being driven by rising household formation, which is boosting demand for rental accommodation.
The medical care index rose 0.7 percent, the largest rise since January 2007. Household furnishings posted their largest gain since September 2008.
Prices for new and used cars and trucks rose for a third straight month. Airline fares, however, fell, as did apparel prices, which recorded their first drop since December.
The overall CPI edged up 0.1 percent last month after increasing 0.2 percent in March. It was held back by a 1.7 percent drop in gasoline prices and no change in food prices. Gasoline prices, however, have since risen.
In the 12 months through April, the CPI fell 0.2 percent, the largest decline since October 2009, after dipping 0.1 percent in March.
Core inflation was lifted by a 0.3 percent increase in shelter costs, which followed a similar gain in March. Shelter inflation is being driven by rising household formation, which is boosting demand for rental accommodation.
The medical care index rose 0.7 percent, the largest rise since January 2007. Household furnishings posted their largest gain since September 2008.
Prices for new and used cars and trucks rose for a third straight month. Airline fares, however, fell, as did apparel prices, which recorded their first drop since December.
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