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The largest contributor to month-to-month inflation in April was shelter, which came up by 0.4% in April, which was a deceleration from its 0.6% rise in March. Used cars moved up by 4.4% after several months of declining prices because the Consumer Price Index took a while to digest wholesale car prices have been rising in recent months. Used car prices may cool off again when US consumers have finished spending their tax refunds.

This was somewhat offset by food prices remaining stable and a decline in new car prices. The measure of the Consumer Price Index (CPI) that strips out volatile components like energy and food rose by 0.4% on a monthly basis.

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Even though used car prices ran hot, inflation came in below expectations, said Skanda Amarnath, an economist at Employ America, a labor advocacy group, in a Twitter spaces.

“That strikes me as actually really good news,” he added.

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