Inflation Cools For First Time in Three Months – NMP Skip to main content

Inflation Cools For First Time in Three Months

May 15, 2024
Inflation
Associate Editor

Department of Labor's April Consumer Price Index increased in line with expectations

Inflation eased in April for the first time since January, indicated the Consumer Price Index (CPI), released by the U.S. Bureau of Labor Statistics Wednesday.  

The CPI increased 0.3% month-over-month in April after increasing 0.4% in March. Year over year, CPI rose 3.4% in line with expectations. Core CPI, all items less food and energy, rose 0.3% month over month and 3.6% year over year. The indices for shelter and gasoline both rose in April, which combined, contributed over 70% of the monthly increase in the index for all items. The energy index rose 1.1% over the same time frame, while the food index remained unchanged.

“There are two ‘inflation in-laws’ that just won’t leave – higher than long-run trend services-less-shelter inflation, which has been increasing in recent months, and shelter inflation that remains persistently above the historical trend,” First American Chief Economist Mark Fleming commented on the report. “In fact, the index for shelter inflation increased 5.5% year over year in April, barely continuing its slow deceleration, and was a major contributor – given its very high weight in the ‘basket’ – to overall inflation.” 

As Fleming noted, economic analysts are particularly interested in the CPI’s shelter component, as it tends to be the Fed’s preferred measure of inflation. Recent trends in market rents increasing or remaining the same are a future headwind to overall shelter inflation normalizing.

“This is what happens when you don’t build enough of a product in high demand,” Fleming pointed out. “Shelter inflation headwinds picking up strength.”

Wednesday’s CPI release follows the Federal Reserve Open Market Committee’s May 1 decision to leave its Federal Funds rate unchanged for the sixth consecutive time. It’s the Fed’s dual mandate to keep prices stable and maximize employment in the U.S. Officials are looking for signs inflation will reach their 2% target before cutting interest rates.

There’s been no indication as to when a rate cut might happen, if at all in 2024.

About the author
Associate Editor
Erica Drzewiecki is an associate editor at NMP.
Published
May 15, 2024
Investor Home Purchases Hold Steady Despite Housing Market Slowdown

Realtor.com report finds investors accounted for 11.3% of home purchases in 2025, as small investors gained market share and institutional buyers continued to retreat

Jun 23, 2026
Seller Concessions Hit Record Spring High, Giving Buyers More Leverage

Nearly half of home sales included seller concessions in May, creating new opportunities for borrowers to reduce upfront costs and negotiate better terms

Jun 23, 2026
Housing Supply May Matter More Than Rates: JPMorgan

New report argues factory-built housing could lower construction costs, expand affordable inventory, and create more opportunities for first-time homebuyers

Jun 23, 2026
Best And Worst Markets For Single-Parent Homeownership

LendingTree finds single parents in some metros are more than twice as likely to own a home as those in the nation's least affordable markets

Jun 22, 2026
One-Third Of Homeowners Expect To Refinance Despite Elevated Mortgage Rates

Many prospective refinancers carry mortgage rates above 5%, suggesting demand could accelerate if borrowing costs decline

Jun 19, 2026
FHA Continues To Drive New-Home Purchase Activity

Government-backed loans accounted for more than half of builder applications for a fifth straight month as loan sizes fell and buyers remained rate-sensitive

Jun 19, 2026