Inflation rate slows, but prices still on the increase

Consumer prices increased at a slower pace in April compared to March, according to the Bureau of Labor Statistics' April Consumer Price Index (CPI) .

Supply disruptions kept inflation near its highest level in 40 years, and consumer prices rose more than anticipated even though at a slower rate than in March. Inflation rose 8.3% in April over last year, coming down from March's 8.5%, the fastest rate since 1981. Most economists predicted an 8.1% increase in April.

On a month-over-month basis, the broadest measure of CPI increased by 0.3%, compared to March's 1.2% rise.

Much of the decrease in overall CPI for April came from energy, which was expected as prices for crude oil, natural gas, and other energy commodities moderated in April after spiking in March immediately following Russia's invasion of Ukraine.

The energy price index fell 2.7% in April compared to March, after increasing 11% during the previous month. Motor fuel index dropped 5.8% and the gasoline index dropped by 6.1%, and energy commodities index dipped by 5.4% compared to March.

Core CPI rose 6.2% last month over last year, following March's 6.5% increase.

Medical care rose 0.5% and medical care commodities rose 0.1% in April.

Prices for new vehicles also increased 1.1% for the fastest monthly rise since December. Airline fares jumped 18.6% following March's 10.7% increase as demand ramps up as people travel again.

The food index rose 9.4% over last year in the largest annual increase since April 1981.