Consumer prices increase 0.3 in April
CPI rises 8.3 yearonyear, first growth slowdown since August
Core CPI jumps 0.6, climbs 6.2 yearonyear
Airline fares post record 18.6 increase

WASHINGTON, May 11 Reuters U.S. consumer price growth slowed sharply in April as gasoline eased off record highs, suggesting inflation has probably peaked, though it is likely to stay hot for a while and keep the Federal Reserve39;s foot on the brakes to cool demand.

That aspect was reinforced by the report from the Labor Department on Wednesday, which also showed underlying monthly inflation pressures building up again after a lull in March as airline ticket prices notched their biggest increase on record. Rents rose by the most since 2006, further squeezing consumers who also paid more for food and healthcare.

The country39;s struggle with high inflation isn39;t over yet, but the markets can still breathe a sigh of relief that it is not getting any worse, said Christopher Rupkey, chief economist at FWDBONDS in New York. The Fed can stay on plan with 50 basis points rate hikes in June and July and there is no reason to move more expeditiously to fight inflation.

The consumer price index increased 0.3 last month, the smallest gain since last August as gasoline prices fell 6.1 after soaring 18.3 in March. That stood in sharp contrast to the 1.2 monthtomonth surge in the CPI in March, which was the largest advance since September 2005.

The drop in gasoline blunted a 0.9 increase in…