The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.3 percent in April, following a 0.4 percent increase in March, as reported by the U.S. Bureau of Labor Statistics. Over the past 12 months, the all items index increased by 3.4 percent before seasonal adjustment.
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U.S. Economic Growth Slows in First Quarter of 2024
The U.S. economy grew at an annual rate of 1.6 percent in the first quarter of 2024, according to the advance estimate from the Bureau of Economic Analysis. This growth rate marks a significant deceleration from the 3.4 percent expansion observed in the fourth quarter of 2023. The initial GDP data for the first quarter reflects various economic activities, including consumer spending and investments in both residential and nonresidential sectors.
Details of Economic Components Contributing to GDP
Significant contributions to the GDP from January to March came from consumer spending, particularly in services such as healthcare and financial services, and an increase in residential fixed investment highlighted by new single-family housing construction. However, these gains were partially offset by a decrease in private inventory investment and a notable increase in imports, which negatively impact GDP calculations.
Economic Decelerations and Accelerations
The slowdown in GDP growth relative to the previous quarter was influenced by a deceleration in consumer spending, exports, and state and local government spending, coupled with a downturn in federal government spending. On a positive note, there was an acceleration in residential fixed investment. Imports saw an increase, adding further complexity to the overall economic landscape.
Monetary Values and Inflation
Current-dollar GDP rose by 4.8 percent, reaching a total of $28.28 trillion. In terms of inflation, the price index for gross domestic purchases increased by 3.1 percent in the first quarter, signaling higher prices compared to a 1.9 percent rise in the previous quarter. The Personal Consumption Expenditures (PCE) price index, a key measure of inflation, rose by 3.4 percent, with the core PCE (excluding food and energy) climbing to 3.7 percent.
Personal Income and Savings
Current-dollar personal income saw a substantial increase of $407.1 billion in the first quarter, supported by rises in compensation and personal current transfer receipts. Disposable personal income also grew, though personal saving decreased to $755.7 billion, resulting in a saving rate of 3.6 percent, down from 4.0 percent in the fourth quarter.
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April 2024 Consumer Price Index Summary
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