US annual consumer inflation unexpectedly ticks down to 2.3% in April

By Mucahithan Avcioglu

ISTANBUL (AA) - Consumer inflation in the US unexpectedly inched down to 2.3% in April, from 2.4% in the previous month, according to data released Tuesday.

The market expected the figure to remain unchanged at 2.4%, recorded in March.

On a monthly basis, CPI showed an increase of 0.2%, following a 0.1% decline in March. Monthly inflation also came below the market forecasts of 0.3% in April.

"The index for shelter rose 0.3% in April, accounting for more than half of the all items monthly increase," the Labor Department's Bureau of Labor Statistics said in a statement.

"The energy index also increased over the month, rising 0.7% as increases in the natural gas index and the electricity index more than offset a decline in the gasoline index," it noted.

In contrast, the index for food fell 0.1% in April as the food at home index decreased 0.4% and the food away from home index rose 0.4% over the month.

Core CPI, which excludes volatile food and energy prices, rose 0.2% in April from the prior month, below the market estimates of 0.3% but slightly gaining pace from March's 0.1% rise.

Annually, the core inflation was stable at 2.8% in April, matching market estimates.

The inflation figures came after US President Donald Trump's remarks of "no inflation" on Monday.

"Gasoline, energy, groceries, and all other costs, down. No inflation!!!" he wrote on social media.

Trump has previously criticized Federal Reserve Chair Jerome Powell on interest rate and inflation issues.

Last week, the Fed decided not to lower the policy rate, keeping it in the range of 4.25% to 4.5%.

"Oil and Energy way down, almost all costs (groceries and “eggs”) down, virtually NO INFLATION," Trump said last week.