April Inflation Breakdown: Rising Costs in Food, Shelter, and Medical Care Strain Consumers
By Molly Moorhead
May 13, 2025
US inflation eased in April. The Bureau of Labor Statistics showed the Consumer Price Index rose 2.3% over the past year. This rise dropped from 2.4% in March. It marks the slowest yearly increase since February 2021. Food, shelter, and medical care kept pushing household budgets.
Mixed Trends in Food Prices
Some food prices fell. Yet, they stay much higher than last year. Grocery prices fell by 0.4% in April after a 0.5% jump in March. In this trend, hot dogs, breakfast cereals, and eggs dropped in price. Egg prices fell by 12.7% from the previous month. Even so, a dozen large Grade A eggs cost $5.12 in April. This price shows a 49% rise from last year.
Beef remains a worry. Ground beef prices jumped 10% over the year. Steak costs climbed 7%. Ground beef now costs about $6.14 per pound.
Dining out cost more too. Prices at restaurants went up 3.9% compared to last year. They increased 0.4% from March.
Medical Care Costs on the Rise
Medical care felt inflation’s pressure. April saw medical services rise 0.5% from March. They are 3.1% higher than a year ago. Hospital services rose 3.6% and nursing home care went up 4.6%. Prescription drugs increased 0.4% on a monthly basis. They rose 2.3% since April 2024. Health insurance costs climbed 3.3% over the past year and 0.4% from the previous month.
Housing and Transportation: The Blueprints of Inflation
Housing shows stubborn inflation. Shelter costs went up 0.3% last month and 4% over the year. New multifamily construction has cooled rents. Home price gains have slowed compared to earlier years.
Transportation has its own market forces. Used car prices grew 1.5% compared to last year. This rise came after sharper increases during the pandemic. New car prices stayed flat from March to April. Dealers seem to counter tariffs well.
Gas stations bring a small relief. The gasoline index dropped 0.1% in April. It is 11.8% lower than a year ago. On May 13, the national average for gas was $3.16 per gallon. This is down from $3.62 a year ago.
What Lies Ahead for Inflation
Inflation still sits above the Federal Reserve’s 2% target. Tariffs and broader economic shocks may shape future rates. Analysts expect the Fed will keep interest rates steady for now while watching these trends.
Price pressure remains on everyday items and services. Consumers must stay alert. They may need new ways to manage their budgets in this economic climate.
Stay tuned for more updates on finance and market trends to help guide your financial choices.
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