Consumer prices in the United States continued to rise in April, with indications that inflationary pressures remain elevated, suggesting a slow and uneven path towards a decline in inflation.
According to the government’s report on Wednesday, prices increased by 0.4% from March to April, a significant jump compared to the 0.1% increase from February to March, the Associated Press reports.
On a year-over-year basis, prices rose by 4.9%, slightly lower than the increase observed in March. This represents the smallest annual increase in two years.
Although April’s data showed an overall increase in price levels, there were signs of a potential moderation in inflation.
Grocery prices declined for the second consecutive month, and the cost of various services, including airfare and hotel accommodations, experienced significant drops.
While apartment rents did rise in April, the pace of increase was slower compared to previous months.
These figures will likely influence the Federal Reserve’s policymakers, who have been closely monitoring service prices, as reported by the AP.
The April data may align with their recent indication after the last meeting to pause the series of 10 consecutive interest rate hikes as they evaluate the economic impact of higher borrowing costs.
Written by staff