CPI year-over-year inflation 4.9% as the economy showed signs of cooling
Consumer prices in the U.S. rose 0.4% from March to April, up from 0.1% from February to March. Compared with a year earlier, prices climbed 4.9%, down just slightly from March’s year-over-year increase.
Inflation rose 4.9% in April from a year ago, less than expectationshttps://t.co/W0dKh0iX4I
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The nation’s inflation rate has steadily cooled since peaking at 9.1% last June but remains far above the Federal Reserve’s 2% target rate.
The Fed is paying particular attention to core prices, which exclude volatile food and energy costs and are regarded as a better gauge of longer-term inflation trends.
The Federal Reserve aggressively raised rates for more than a year to try to tame inflation by slowing economic activity, and indicated last week it might be done lifting them for now.
Core prices rose 0.4% from March to April, the same as from February to March. It was the fifth straight month that core prices have risen by 0.4% or more. Increases at that pace are far above the Fed’s 2% target.
Compared with a year ago, core prices rose 5.5%, just below a yearly increase of 5.6% in March.
Unlike the prices for products, the costs of services — from restaurant meals to auto insurance, dental care to education — are still surging. A major reason is that companies have had to raise pay in those industries to find and retain workers.
Federal Reserve officials say that fast-rising wages, while good for workers take home income, have contributed to higher costs in services industries because labor makes up a significant portion of there costs.
The Rock reacts to US CPI pic.twitter.com/2LOBp9W31j
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