WASHINGTON–Inflation eased just a bit in April with the Consumer Price Index slowing to its lowest level since early 2021.
According to the new data from the Labor Department, in April the CPI, which excludes food and energy items, was up 3.6% annually. That would seem to indicate the Federal Reserve’s decision to raise rates quickly and then hold them there is having its effect, albeit inflation is being tamed at a slower pace than may had expected.
“Headline and core inflation slowed down a bit in April after hot readings during the first quarter,” said America's Credit Unions Senior Economist Dawit Kebede. “Volatile energy and lagging shelter contributed for over seventy percent of the monthly increase indicating further easing in the coming few months as the shelter index matches more with current market price of rents. April's slow pace of job gains report combined with easing inflation has the potential to alter Federal Reserve's higher for longer position if this trend continues.”
The Federal Reserve is scheduled to next meet in June, but most analysts say it will take multiple reports of slower inflation before it makes any move to reduce rates.
The Wall Street Journal reported the Fed might not be ready to cut interest rates before September.
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