“US Inflation Rate Slows Down to 4.9% in April 2023 Despite Previous Expectations”

The pace of annual inflation in America slowed down in April of the year 2023, to reach 4.9%, compared to expectations that indicated its stability at 5%.

The CPI rose for the month by 0.4%, in line with estimates, from 0.1% in March.

Excluding volatile food and energy prices, the monthly core CPI held steady at 0.4%, while it slowed to 5.5% y/y.

The rises in the prices of housing, gasoline and used vehicles led to an increase in the index, which was offset to some extent by the decrease in the prices of fuel oil, new vehicles and foodstuffs.

The markets reacted positively to the data, with futures contracts turning positive as Treasury yields declined.

Inflation continued to rise despite the efforts of the US Federal Reserve, and as of March 2022, the Fed raised interest rates 10 consecutive times by a total of 5 percentage points, bringing borrowing rates to their highest level in nearly 16 years.

The CPI reading has eased considerably since it peaked at around 9% in June 2022. However, inflation remains well above the Fed’s annual target of 2%.