The all-items headline figure increased 0.2% month-over-month (0.207%), also a tenth lower than expectations and contributing to an annual increase of 3.9%.

Only a handful of the 77 economists surveyed before the report expected to see core inflation deviate higher or lower than the consensus 0.2% forecast.

Energy prices were flat in April but are up 15.9% on the year, while gas prices fell 2.0% in the month.

Food and beverages rose 0.9% on the month and are up 5.0% year-over-year. Commodities rose 0.1% from the previous month and are up 4.8% on the year.

Owners equivalent rent rose 0.2% from the previous month and is now 2.6% higher than the same period last year.

The index for housing rose 0.3% in April following a 0.4% increase in March.

Services advanced by 0.3% in April, contributing to a 3.3% annual increase.

Personal computers fell 1.5% in the month, representing a 13.2% decline from a year prior.

By Patrick McGee, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Cristina Markham, This email address is being protected from spam bots, you need Javascript enabled to view it