Inflation fell to 2.1% in April from 2.3% in March, according to the Federal Reserve’s preferred gauge, below the level economists had forecast.
After ticking up through the fall, the Consumer Price Index has fallen throughout the first quarter of this year, dropping down to a 2.3% annual increase from 3% in January.
Consumer spending also slowed sharply in April, with just a 0.2% increase, while the savings rate jumped to 4.9%, its highest level in nearly a year.
Consumers also saw their personal income rise 0.8%, ahead of the forecast, with food prices falling 0.3% despite energy goods and services increasing 0.5%.