A widely followed measure of inflation rose in April, despite more than a year’s worth of Federal Reserve interest rate increases.

The consumer price index, which measures the cost of a broad swath of goods and services, increased 0.4% for the month, in line with the Dow Jones estimate, according to a Labor Department report Wednesday.

However, that equated to an annual increase of 4.9%, slightly less than the 5% estimate.

Excluding volatile food and energy categories, core CPI rose 0.4% monthly and 5.5% from a year ago both in line with expectations.

Increases in shelter, gasoline and used vehicles pushed the index higher, and were offset somewhat by declines in prices for fuel oil, new vehicles and food at home.

Markets reacted positively to the news, with futures turning positive as Treasury yields were lower.

Inflation has been persistent despite the Fed’s efforts to bring down prices. Starting in March 2022, the central bank has enacted 10 consecutive interest rate increases totaling 5 percentage points, taking benchmark borrowing rates to their highest level in nearly 16 years.

The CPI reading has cooled considerably since peaking out around 9% in June 2022. However, inflation still has held well above the Fed’s 2% annual target.

The report provides both good and bad news on the inflation front as Fed officials weigh their next move on rates.

Shelter costs, which make up about one-third of the CPI weighting, increased another 0.4% on the month and are now up 8.1% from a year ago. The monthly gain represented a step down from previous months’ increases but was still indicative that a key inflation driver is rising.

At the same time, the 4.4% jump in prices for used cars and trucks reverses recent declines. Food prices, though, were flat while the energy index rose 0.6%, boosted by a 3% gain in gasoline. Of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the biggest monthly drop since February 2015.

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