November 4, 2024

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US Inflation Falls Less Than Expected – Finance

US Inflation Falls Less Than Expected – Finance

Inflation in the US started to decline in April for the first time in eight months. This is according to figures from the Ministry of Labor on Wednesday. Inflation came in lower than analysts had expected.

Consumer prices in the U.S. averaged 8.3 percent higher in April than a year earlier, compared with 8.5 percent in March. This is the highest level since December 1981.

However, analysts expected a strong cooling. They assumed the annual inflation rate would be 8.1 percent in April.

To combat high inflation, the Federal Reserve (U.S. central bank) began raising interest rates in March, later raising them by a quarter of a percentage point.

In April, the central bank picked up the pace by raising interest rates by half a percentage point. This is the largest rate increase since 2000. Federal Reserve Chairman Jerome Powell said a half-percentage-point interest rate hike would be back on the table at the next rate meeting.

Consumer prices in the U.S. averaged 8.3 percent higher in April than a year earlier, compared with 8.5 percent in March. This is the highest level since December 1981. However, analysts expected a strong cooling. They assumed the annual inflation rate would be 8.1 percent in April. To combat high inflation, the Federal Reserve (U.S. central bank) began raising interest rates in March, later raising them by a quarter of a percentage point. In April, the central bank picked up the pace by raising interest rates by half a percentage point. This is the largest rate increase since 2000. Federal Reserve Chairman Jerome Powell said a half-percentage-point interest rate hike would be back on the table at the next rate meeting.

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