The consumer price index rose 3.4% in April compared to the same month last year, slowing from the previous month but still well above the Federal Reserve’s 2% goal to curb inflation.
The latest monthly figure fell slightly from 3.5% in March to 3.4% in April, in line with economists’ expectations, according to FactSet. So-called core inflation, which subtracts volatile food and energy prices, was as expected at 3.6% annually, the lowest level since early last year.
Stock futures soared ahead of the market open this spring, as traders seemed relieved by months of unexpectedly strong inflation.
Inflation rose 0.3% last month from the previous month, slightly below the expected 0.4% after rising 0.4% in March and February, the Labor Department’s Bureau of Labor Statistics said Wednesday.
The annual rate of increase in consumer prices has fallen from a peak of 9.1% in June 2022, but progress has stalled.inflation has accelerated 1st quarter amid strong domestic demand, although it was subdued for much of last year.
Last month’s economic slowdown came as a relief as Tuesday’s statistics showed a sharp rise producer price During April.
Federal Reserve Chairman Jerome Powell reiterated Tuesday that he expects inflation to eventually reach the central bank’s 2% target, but acknowledged that three consecutive months of rising prices have weakened his confidence in that outlook. .
Inflation has fallen sharply from 9.1% in summer 2022, but is now higher than it was in June 2023, when it hit 3% for the first time.
Federal Reserve policymakers raised the key interest rate to 5.3%, the highest level in 23 years, in an effort to curb price increases.
Chairman Powell stressed on Tuesday that the Fed will keep interest rates at those levels for as long as necessary to fully overcome inflation, suggesting that rate cuts will not begin as quickly as many had hoped. There is.
Economists say providers of services such as auto insurance, housing and health care are keeping up with rising costs, driving inflation.
Whether the inflation rate continues to decline is likely to have a major impact on this year’s presidential election.
Republican lawmakers who criticize President Joe Biden are trying to pin the blame for high prices on him and use that to derail his re-election bid.
Employment remains strong and wage growth is healthy on average, but prices remain broadly above pre-pandemic levels.
