The inflation rate in the US fell slightly in April. We are talking about the lowest increase since April 2021.
High inflation in the US eased slightly in April. Consumer prices rose by 4.9 percent compared to the same month last year, the US Department of Labor announced on Wednesday in Washington. This is the lowest increase since April 2021. Analysts had expected the inflation rate to remain at the previous month’s level of 5.0 percent.
Month-on-month, consumer prices rose 0.4 percent in April. This was in line with expectations. According to the ministry, rents and used car prices accounted for the largest share of the price increase. Fuel prices also increased, while other energy sources became cheaper. Food prices stagnated on a monthly basis.
Core inflation fell to 5.5 percent from 5.6 percent. This rate excludes volatile energy and food prices. According to economists, core inflation reflects the general price trend better than the overall rate.
Inflation data are currently the focus of particular attention because they are of great importance for the monetary policy of the US Federal Reserve. The Federal Reserve has recently floated the possibility of an interest rate pause, but has not committed itself to it. For a good year now, the monetary watchdogs have been fighting the high inflation with sharp interest rate hikes.
White House spokeswoman Karine Jean-Pierre said gas prices have fallen significantly since peaking last summer. Supermarket prices have also fallen in recent months, giving families a welcome respite. There is still more to do. But the steps taken by US President Joe Biden are already having an effect.