Region:
USA
Category:
Economy

U.S. Inflation rate slows to 8.3% after gas prices fall but stays close to 40-year high –as

  • U.S. Inflation rate slows to 8.3% after gas prices fall but stays close to 40-year high –as
    The consumer price index rose by 0.3% last month U.S. Inflation rate slows to 8.3% after gas prices fall but stays close to 40-year high –as
Region:
USA
Category:
Economy
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U.S. consumer price growth slowed sharply in April as gasoline eased off record highs, suggesting inflation has probably peaked, though it is likely to stay hot for a while and keep the Federal Reserve's foot on the brakes to cool demand.

The yearly rate of U.S. inflation fell to 8.3% in April to mark the first decline in eight months, but the upward pressure on prices is unlikely to ease fast enough to give Americans much relief anytime soon.

The consumer price index rose by 0.3% last month, the government said Wednesday, matching the smallest increase in eight months.

Lower gas prices were the chief reason for the small rise in inflation last month. Oil prices surged after the Russian invasion of Ukraine and then leveled off in April.

The rate of inflation over the past year slowed to 8.3% from 8.5% — the first time it’s declined since last summer. The March reading was the highest since 1981.

Yet the so-called core rate of inflation, which omits food and energy, rose by a stronger 0.6%. Wall Street had forecast a 0.4% gain.

The higher-than-expected increase in the core rate — the largest since January — disappointed Wall Street.

The Federal Reserve views the core CPI as a more accurate measure of inflationary trends, but most Americans still pay a large share of their budget for fuel and meals.

The increase in the core rate over the past year slowed to 6.2% from from a 40-year high of 6.5% in March.

President Joe Biden on Wednesday again acknowledged the pain inflation was inflicting on American families and reiterated that bringing prices down "is my top economic priority."

The Fed last week raised its policy interest rate by half a percentage point, the biggest hike in 22 years, and said it would begin trimming its bond holdings next month. The U.S. central bank started raising rates in March.

Stocks on Wall Street rebounded following a recent drubbing. The dollar fell against a basket of currencies while U.S. Treasury prices were mixed.