US CPI Report: Inflation Less Than Expected In April, Core Rates Hit Three-Year Low

The yearly rate for overall price growth dropped slightly to 3.4 per cent from 3.5 per cent.
US inflation data, us inflation, us inflation rate, us, america, us consumer price index, us cpi

US CPI Report: Inflation Holds Steady, Core Rates Hit Three-Year Low (Image Source: iStock)

In April, consumer prices in the United States increased by a smaller amount than anticipated, indicating a potential downward trend in inflation as the second quarter begins. This news has boosted financial market expectations for a cut in interest rates by September.

CPI Data

According to the Labor Department's Bureau of Labor Statistics (BLS), the consumer price index (CPI) rose by 0.3 per cent last month, compared to a 0.4 per cent increase in both March and February.

CPI Data Over 12 Months

Over the past 12 months leading up to April, the CPI went up by 3.4 per cent, slightly lower than the 3.5 per cent rise observed in March.

Survey Report

Economists surveyed by Reuters had predicted a 0.4 per cent increase in the CPI for the month and a year-on-year advancement of 3.4 per cent.
Annual Rise In Consumer Price Index
Despite progress made earlier, the annual rise in consumer prices has slowed down from its peak of 9.1 per cent in June 2022.
What Recent Data Suggests?
However, recent data suggests a stalling of this progress, with inflation picking up in the first quarter due to strong domestic demand after a period of moderation last year.
Slowdown In Price Increase
The slowdown in price increases last month brought relief, particularly following a surge in producer prices reported on Tuesday. Economists attribute the ongoing inflation to service providers, such as motor vehicle insurance, housing, and healthcare, trying to catch up with higher costs.
What Was Expectation?
There is an expectation among economists that inflation pressures will ease off this quarter, gradually bringing prices closer to the Federal Reserve's target of 2 per cent, especially as the labor market cools down. Federal Reserve Chair Jerome Powell echoed this sentiment on Tuesday, expressing anticipation for inflation to decrease to levels resembling those of last year.
End of Article
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news