The US Bureau of Labor Statistics (BLS) stated on Wednesday that annual inflation in the United States fell to 4.9% in April from 5% in March, as measured by the change in the Consumer Price Index (CPI). This number was somewhat below than the market forecast of 5%.
The publication also indicated that Core CPI inflation, which excludes volatile food and energy costs, fell to 5.5% from 5.6% as projected.
The CPI and Core CPI grew 0.4% month on month, confirming experts’ expectations.
“The index for shelter was the largest contributor to the monthly all-items increase, followed by increases in the index for used cars and trucks and the index for petrol,” the BLS noted in a press release. “The increase in petrol more than offset declines in other energy component indexes, and the energy index rose 0.6 percent in April. “
CPI reaction on market
The US Dollar (USD) was under fresh selling pressure following the April inflation report, with the US Dollar Index shedding 0.3% on a daily basis at 101.30. Furthermore, the benchmark 10-year US Treasury bond rate fell below 3.5%.
The chance of the Federal Reserve holding its policy rate steady in June has risen to 85% from 79% earlier in the day, according to the CME Group Fed Watch Tool.
The CPI report comes on top of the Nonfarm Payrolls (NFP) statistics, which were issued less than a week ago, and combined they make a solid case for investors to pause. rate reduction, which impacts on the greenback.
