- 1440 Daily Digest
Inflation Growth Eases
US inflation in April grew to less than 5% annually for the first time in two years, according to government data released yesterday. The consumer price index—a measure of inflation that tracks the change in prices of a basket of goods and services—rose 4.9% year-over-year last month. The figure is lower than analyst estimates and the 5% rate in March, marking the 10th consecutive month of decline in the year-over-year growth rate.
Excluding volatile food and energy costs, core CPI rose 0.4% month-over-month in April, the same as in March, and 5.5% year-over-year, down from 5.6% in March. The latest figures are in line with expectations. Increased costs for shelter, gasoline, and used vehicles contributed to the rise in the overall inflation rate, which was offset by decreases in fuel, new vehicles, and food at home. See data here.
The consumer price index has cooled since peaking at a 9% annual growth rate in June 2022 (see chart) but still holds above the Federal Reserve's 2% annual target.