Inflation Research Brief

Inflation increase concentrated in food and energy. Consumer prices rose further in April, as food and energy accounted for much of the increase. Yet broader price pass-through remained limited, while distortions tied to lagged shelter data masked a more subdued core reading. Higher prices for necessities such as food and energy may also be squeezing household budgets, limiting how much businesses can raise prices elsewhere. As a result, more of the tariff and energy shock may remain at the business level, pressuring tenants without fully showing up in CPI.