(fxcue news) - Consumer prices in the U.S. rose by slightly less than expected in the month of April, according to a report released by the Labor Department on Tuesday. The Labor Department said its consumer price index inched up by 0.2 percent in April after edging down by 0.1 percent in March. Economists had expected consumer prices to rise by 0.3 percent. The report said shelter costs rose by 0.3 percent in April following a 0.2 percent uptick in March, accounting for more than half of the monthly increase by the consumer price index. Energy prices also climbed by 0.7 percent in April after plunging by 2.4 percent in March, as higher prices for natural gas and electricity index more than offset a dip in prices for gasoline. Meanwhile the report said food prices slipped by 0.1 percent in April after rising by 0.2 percent in March, with a decrease in prices for food at home offsetting an increase in prices for food away from home. Excluding food and energy prices, consumer prices still rose by 0.2 percent in April after creeping up by 0.1 percent in March. Core consumer prices were also expected to climb by 0.3 percent. The uptick by core consumer prices reflected the higher shelter costs as well as higher prices for household furnishings and operations, medical care, motor vehicle insurance, education, and personal care. On the other hand, the Labor Department said prices for airline fares, used cars and trucks, communication, and apparel were among those that decreased in April. The report also said the annual rate of growth by consumer prices slowed to 2.3 percent in April from 2.4 percent in March, while economists had expected year-over-year growth to remain unchanged. The annual rate of growth by core consumer prices was unchanged from the previous month at 2.8 percent, in line with economist estimates. "While annual CPI inflation slowed to 2.3 percent to April, this may be the low point in 2025," said Nationwide Senior Economist Ben Ayers. "As tariff costs increasingly flow into consumer prices, we expect a jump in the CPI this summer, pushing the annual reading back above three percent." "Correspondingly, economic growth should be soft over the rest of the year as higher prices and economic concerns weigh on spending activity," he added. "This puts the Fed in a difficult position of trying to balance faster inflation with a weakening economy, with rate cuts likely delayed until later in the year." On Thursday, the Labor Department is scheduled to release a separate report on producer price inflation in the month of April. Producer prices are expected to rise by 0.2 percent in April after falling by 0.4 percent in March, while the annual rate of producer price growth is expected to slow to 2.5 percent in April from 2.7 percent in March.