April Inflation Cools Slightly: CPI Rises 0.2% as Food Prices Dip

the staff of the Ridgewood blog

WASHINGTON DC, inflation came in slightly lower than expected in April 2025, offering cautious optimism for consumers and policymakers alike. According to the U.S. Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2% on a seasonally adjusted basis in April, following a 0.1% decrease in March.

On an unadjusted 12-month basis, the CPI rose 2.3%, the smallest year-over-year increase since February 2021.

📊 Key April CPI Highlights

🏠 Shelter Costs Lead the Monthly Increase

• Shelter prices increased 0.3%, contributing more than half of the total CPI increase.

⚡ Energy Prices Edge Higher

• The energy index rose 0.7%, with gains in natural gas and electricity offsetting a drop in gasoline prices.

🍽️ Food Prices See a Slight Decline

• Overall food prices fell 0.1% in April.

  • Food at home dropped 0.4%

  • Food away from home rose 0.4%

🛍️ Core CPI (Excluding Food & Energy)

• Core CPI rose 0.2%, following a 0.1% increase in March.

• Increases were seen in:

  • Household furnishings

  • Medical care

  • Motor vehicle insurance

  • Education

  • Personal care

• Decreases occurred in:

  • Airline fares

  • Used cars and trucks

  • Communication

  • Apparel

📅 Year-Over-Year Data

• Overall CPI: +2.3% (down from 2.4% in March)

• Core CPI (less food & energy): +2.8%

• Energy index: -3.7%

• Food index: +2.8%

📉 What This Means for Consumers

The moderation in inflation, particularly in food prices, provides a modest relief to households facing cost-of-living pressures. Economists note that continued declines in energy costs and slower shelter inflation could help support further cooling in the months ahead. However, categories like medical care and auto insurance continue to see upward price pressure.

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