• US annual inflation continues to decelerate through April. As reported by the BLS, the Consumer Price
Index grew 4.9% year-over-year as of the most recent reading. The current pace of growth indicates a
slowdown compared to the 5% year-over-year growth witnessed in March, signaling a gradual easing of
inflationary pressures.
• Despite overall signs of cooling inflation, shelter costs, up 8.1% year-over-year, remain a sore spot.
• Conversely, prices for airline fares, new cars, and communication declined throughout the month, providing
some relief to consumers. Food prices have remained relatively stable, with grocery store prices generally
decreasing while the cost of eating out has continued to rise.
• Personal inflation rates can differ widely depending on whether someone rents or owns their home.
According to Chandan Economics’ latest calculations, the adjusted CPI for renters was 4.9% year-over-year in April, its slowest annual pace since April 2021.
• Meanwhile, the adjusted CPI for homeowners held steady at 2.4% year-over-year in April, remaining
virtually unchanged from March.
• Inflation rates are adjusted for each group, stripping rental costs for homeowners and homeownership
costs for renters. Further, the calculation assumes that fixed-rate homeowners would not feel the impact
of higher shelter costs, given that they have already locked in monthly housing expenses that do not
• The inflation spread between these two groups fell for the first time in nine months in April. However, the
difference between renter and fixed-rate homeowner personal inflation rates remains near their all-time
high, currently sitting at 2.6 percentage points.

Read the full report here.