Inflation improves slightly in April, but high cost of housing remains a big obstacle

Government data released Wednesday show that inflation eased a bit in April, but remains at a relatively high level. The latest report isn't likely to lift the grim mood that much of the public has toward an otherwise solid economy.

Though incomes have generally risen more than consumer prices, the overall rate of inflation remains stubbornly high. It dropped a notch in April but was up 3.4% from a year ago, the Bureau of Labor Statistics said.

And unexpectedly, the biggest culprit is housing.

The Federal Reserve's textbook-perfect policy of fighting inflation by pushing up interest rates has worked in large parts of the economy. The higher interest rates have helped slow growth in consumer prices for items such as food, gas, clothes and cars. Today,