WASHINGTON — The rise in consumer prices slowed in April despite the biggest jump in food costs in nearly two decades. But with oil near record levels, Americans should brace for higher gasoline prices in coming months.
The Labor Department reported Wednesday that consumer prices edged up 0.2 percent last month, slightly less than expected and better than the 0.3 percent rise in March.
The lower inflation reflected a flat reading for energy, which helped offset a 0.9 percent jump in food. That was the biggest one-month surge since a 1.5 percent increase in January 1990.
Last month’s increase was driven by widespread increases, including in bread, butter, milk and coffee. Food prices have been climbing rapidly over the past year, reflecting higher world demand and the impact of increasing energy prices on the cost of fertilizer and transportation of products to grocery-store shelves.
“We are paying more to fill up our tank and buy a loaf of bread and a gallon of milk,” said Mark Zandi, chief economist at Moody’s . “It’s going to be tough to go to the grocery store this summer or drive to the beach.”
For April, energy prices were unchanged and gasoline prices fell by 2 percent, a decline that would strike motorists as strange, given that they have been watching the price of gasoline rise relentlessly in recent weeks.
However, since gasoline prices normally rise in April, the 5.6 percent increase for the month was turned into a 2 percent drop after the government adjusted for normal seasonal variations — little comfort to people paying pump prices that hit a record of $3.758 per gallon Wednesday, up nearly 40 cents in the past month.
Zandi said gasoline prices will also likely increase significantly in May as pump prices reflect the recent run-up in crude-oil prices, which remained above $124 per barrel Wednesday.
Outside of the food and energy sectors, so-called core inflation showed a 0.1 percent rise in April, down from 0.2 percent in March, a performance that economists said should continue as the weakening economy and rising layoffs help keep the lid on price increases.
“The recent slowdown in the United States is definitely helping to contain inflation,” said Rebecca Braeu, an economist at John Hancock Financial in Boston.
