The Labor Department’s Consumer Price Index showed that prices rose 0.4 percent from March to April.
In a reversal from previous months, the price of used cars and trucks unexpectedly rose 4.4 percent in April, contributing to sticky inflation.
While used car prices skyrocketed during the pandemic as the supply of new cars dwindled, prices actually fell 6.6 percent over the last year. April’s increase came as the supply of used cars dropped to its lowest ever level in March, according to Cox Automotive.
Experts aren’t sure where prices will go from here. On one hand, the supply of new cars is rebounding, giving consumers more options. But new cars are often too expensive for many buyers, and auto loan rates keep rising.
Housing costs were another major factor. Rents rose 0.6 percent on the month and 8.8 percent annually. Experts expressed optimism that rents are peaking, pointing to new apartment construction and private sector rent data that shows prices dropping.
“Rent growth will decrease because apartment construction — entry units coming on the market — is already in the pipeline,” National Association of Realtors chief economist Lawrence Yun said Wednesday.
Other categories impacting April inflation included gas prices, which rose 3 percent on the month, and the cost of dining out, which rose 0.4 percent on the month and 8.8 percent annually.
