In this way, inflation in year-on-year terms rose to 4.9%, one tenth less than in March, which continues to confirm the slowdown in the rise in prices.
The US inflation fell below 5% per year for the first time in two years. Prices moderated sharply, which will allow the Fed to definitively confirm the end of the rate hike. However, prices continue to show some strength in monthly terms, forcing the central bank to remain vigilant.
In this way, inflation in year-on-year terms rose to 4.9%, one tenth less than in March, which continues to confirm the slowdown in the rise in prices. The CPI in monthly terms rises 0.4%, compared to 0.1% in March.
For its part, the core CPI rose 5.5% in April as expected (compared to 5.6% the previous month) and in monthly terms rose 0.4% (same as the previous month).
The US Federal Reserve has been fighting intensely against inflation for more than a year. The American central bank began raising interest rates in March 2022. While a week ago it announced, presumably, what would be the last rise in this tightening cycle. The rates have gone from 0 to 5% in a historic ‘rally’ for the price of money. Now the big question is how long they will stay in this restrictive territory.
Both the Fed and the rest of the central banks around the world cross their fingers that inflation will fall naturally. “We continue to expect inflation to fall, especially in the US and to some extent in the eurozone. The world economy has slowed down and we are seeing signs, for example, in the prices of goods. They rose substantially when the world came out of the pandemic, because of all the bottlenecks that were created and the huge shortages, but now they’ve decreased considerably,” said Keith Wade, chief economist and strategist at Schroder.
Source: Ambito
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