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On a month-to-month basis, prices rose 0.3% from March to April, a still-elevated rate but the smallest increase in 8 months.
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The price spike seen this summer is beginning to fade as coronavirus cases start to increase.
The government says millions of older Americans who rely on federal benefits will get a 1.7% increase in their monthly payments next year. It's the third year in a row the increase will be less than 2%.
The Federal Reserve has sharply cut its forecast for U.S. growth this year, reflecting a shrinking economy last quarter caused mostly by harsh weather.