U.S. Inflation Eased Last Month In The First Slowdown Of 2024
HuffPost
The cost-of-living cooled slightly after three elevated readings, likely raising hopes of interest rate cuts.
WASHINGTON (AP) — Consumer inflation in the United States cooled slightly last month after three elevated readings, likely offering a tentative sigh of relief for officials at the Federal Reserve as well as President Joe Biden’s re-election team.
Prices rose 0.3% from March to April, the Labor Department said Wednesday, down slightly from 0.4% the previous month. Measured year-over-year, inflation ticked down from 3.5% to 3.4%. And a measure of underlying inflation, which excludes volatile food and energy costs, fell to the lowest level in three years.
Inflation had been unexpectedly high in the first three months of this year after having steadily dropped in the second half of 2023. The elevated readings had dimmed hopes that the worst bout of inflation in four decades was being rapidly tamed.
Fed Chair Jerome Powell responded by dropping his previous suggestions that interest rate cuts were likely this year. Instead, he stressed that the Fed’s policymakers need “greater confidence” that inflation is falling to their 2% target level before they would reduce borrowing rates from high levels.
Wednesday’s report of moderating price increases may provide a dose of reassurance that inflation could be resuming its slowdown toward the Fed’s target.
