On a monthly basis, CPI fell by 0.1% in April. Economists surveyed by Briefing.com expected a 0.1% jump. The decline was largely due to a 1.4% drop in the energy index, the report said.
Despite its April decline, the energy index has soared 18.5% over the last year.
The small overall CPI increases "should continue to allow the Fed to keep short-term interest rates low," Khan said.
Core CPI: The even more closely watched core CPI, which excludes volatile food and energy prices, rose 0.9% on an annual basis and was unchanged over the month.
0:00/2:44Why oil prices are so slipperyIndex-by-index: The food index jumped 0.5% on an annual basis. It rose 0.2% in April, the same increase as the previous month.
The indexes for recreation, new and used motor vehicles, and medical care also posted increases in April. Other sectors declined, including apparel and household furnishings.
CPI is based on prices of goods and services that people buy for day-to-day living. Prices are collected each month in 87 urban areas across the country, from about 4,000 residences and 25,000 stores.
Tax credit, low mortgage rates lifted April home salesInflation (CPI)
