Inflation rose 4.9 percent year-over-year in April, lower than the expected five percent increase and the lowest annual pace since April 2021, reports CNBC. The value is also 0.1 percent below March’s rate.
Declines in fuel oil, vehicles, and home food prices helped lower the value.
Four of the six grocery store indexes tracked by the Bureau of Labor Statistics to calculate food prices showed declines. Milk fell two percent from last month, the largest monthly drop since February 2015. Egg prices also fell by 1.5 percent over the same period, bringing its annual gain down to 21.4 percent.
Markets responded favorably to the news.
“Today’s reports suggest that the Fed’s campaign to quell inflation is working, albeit more slowly than they would like,” said Quincy Krosby, chief global strategist at LPL Financial. “But for financial markets ... today’s inflation print is a net positive.”
Beginning in March 2022, the central bank instated 10 consecutive interest rate increases, bringing the value up five percentage points. After approving the latest rate hike, the Fed shifted from saying future increases were warranted, to saying the decision will be based on incoming data. Full Story
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