US inflation decelerates in April, in line with market prospects

(MENAFN) In April, the inflation rate in the United States exhibited a deceleration, consistent with market forecasts, signaling a resumption of the downward trajectory of inflation at the onset of the second quarter. This trend has reinforced the financial markets' anticipation of a potential interest rate reduction by the Federal Reserve in September. Data released by the US Department of Labor revealed that the consumer price index (CPI) in the world's largest economy eased to 3.4 percent on an annual basis last April, mirroring expectations and marking a slight decline from the 3.5 percent recorded in March. Similarly, core inflation, which excludes volatile food and energy prices, decreased from 3.8 percent in March to 3.6 percent in April, aligning with market projections.

In terms of monthly changes, the consumer price index moderated to 0.3 percent in April, down from 0.4 percent in March. This adjustment comes after a period of accelerated inflation in the first quarter, driven by robust domestic demand, following a series of more moderate readings throughout much of the preceding year. The slowdown in the pace of consumer price growth last month offers a degree of relief, particularly following recent data indicating a surge in producer prices in April.

Overall, the observed moderation in inflationary pressures aligns with market expectations and could potentially influence the Federal Reserve's monetary policy decisions, as policymakers weigh the evolving economic landscape and the imperative of sustaining price stability while supporting growth.



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