Consumer Price Index Shows Inflation Softened in April 2024
The latest report on inflation, as measured by the Consumer Price Index (CPI), softened in April 2024, with a month-over-month increase of 0.3% and 3.4% increase over the prior year. The slowing is an encouraging sign as the 3% levels seen thus far in 2024 remain above target levels even though moderate by historical measures.
Solid consumer spending levels and a sustained low unemployment rate show the strength of the economy as the Federal Reserve works to ease inflation.
In April, gasoline and housing contributed to nearly three-quarters of the increase in the index this month. Car insurance also has been a prominent contributor to the reading, as vehicle prices have increased.
While consumer sentiment declined last month nationally, as consumers expressed concern about interest rates and inflation, the overall outlook remains strong in Michigan. The Detroit Regional Chamber’s latest statewide Voter Poll indicated that 80% of Michigan voters are not worried about losing their jobs, and 75% are not having trouble finding a good-paying job.