US inflation dips from 4-decade high but still causing pain

WASHINGTON (AP) — Inflation slowed in April after months of relentless gains, a tentative sign that price increases may be peaking while still imposing a financial strain on American households.

A customer pumps gas at an Exxon gas station, Tuesday, May 10, 2022, in Miami. U.S consumers have so far defied higher prices for gas, food, and rent and have been spending more in 2022, providing crucial support to the economy. How long that can continue will be one of the key factors affecting the economy and inflation this year. (AP Photo/Marta Lavandier)

Consumer prices jumped 8.3% from 12 months earlier.

That was below the 8.5% year-over-year surge in March, which was the highest rate since 1981.

On a month-to-month basis, prices rose 0.3% from March to April, the smallest increase in eight months.

Still, Wednesday’s report contained some signs that inflation may be becoming more entrenched. Excluding volatile food and energy costs, “core” prices jumped 0.6% from March to April — twice the rise from February to March.

Those increases were fueled by spiking prices for airline tickets, hotel rooms and new cars.

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