WASHINGTON —The U.S. April consumer price index was up 0.2% and core CPI rose 0.1%, both better than expected in a long-awaited but possibly seasonal moderation. CPI posted a 3.9% over-the-year increase and core grew 2.3%, both moderating from March’s fast pace.

The core CPI was lowered by new vehicles at negative 0.2% — down 1.3% prior to seasonal adjustment — drugs fell 0.2%, airfares slid 0.5%, video and audio dropped 0.4%, hotels decreased 1.9%. Meanwhile, doctor services rose 0.1% and owners’ equivalent rent was up 0.2%.

Food was 0.9% higher, with hikes in prices of fruits and dairy, but beef posting a 1.1% decline. Gains in food prices — which carry a 14.9% weight in CPI — are now running at their fastest pace since 1990. 

— Market News International

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