Inflation cooled in April — is relief coming?
The Consumer Price Index rose 0.3% in April after three months of continued growth in what was expected to be a better year economically.
The Labor Department shared in its monthly report that April’s numbers saw a cool down after prices rose in March by 0.4%. Over the last 12 months, the all-time index has increased 3.4% before any seasonal adjustment.
The report also found that food prices remained the same in April, with food at home costs falling 0.2% and food away from home rising 0.3%. Energy costs rose 1.1% compared to March.
Core measurements, which strip away volatile prices for food and energy, rose 0.3% in April, the Bureau of Labor Statistics shared.
While the numbers are still above what was seen at the beginning of this year, they are back in the right direction, which could mean relief is closer than it was before.
Federal Reserve officials have said that before the central bank can start to cut interest rates there needs to be signs that inflation has fallen and isn’t going to rise again.
While in January, Fed chair Jerome Powell said this could happen sometime this summer, the growth over recent months has pushed that date further out.
Powell acknowledged last month that the plans have been pushed back due to a “lack of progress.”
“Given the strength of the labor market and progress on inflation so far, it’s appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us,” Powell said after March’s numbers came out.
