The consumer price index for April was essentially in line with expectations, but the core increase year over year slowed down a bit.
The Labor Department said Tuesday that the overall CPI was up 0.4% last month, slightly below estimates of a 0.5% advance. The core index, which excludes food and energy, rose 0.2% and matched the number economists were anticipating.
Surprisingly positive news came in the form of data showing that core inflation is now up 2.3% in the past year, down 0.2 percentage points from March.
Last week, the government said its producer price index climbed a greater-than-expected 0.7% in April. The core PPI was unchanged, compared with expectations of a 0.2% increase. The PPI report measures inflation at the wholesale level.