• Tue. May 28th, 2024

April sees inflation slow, matching predictions for the first time in 2021

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May 15, 2024

In April, inflation took a step back as the cost of living measured by the Consumer Price Index rose 3.4% over the year, slightly down from the 3.5% increase in March. This figure matched economists’ predictions and marked the first time this year that price growth came in as expected. The first three months of the year saw inflation higher than anticipated.

The monthly increase in the index was 0.3%, slightly lower than the 0.4% rise seen in the previous month, primarily driven by rising energy prices. This slight decrease in price growth is seen as a positive step for the Federal Reserve, as it is waiting for confidence that inflation is steadily moving towards its 2% annual goal.

High inflation has put pressure on household budgets, resulting in higher prices for items like gas and groceries. It has also led to the Federal Reserve postponing a reduction in its benchmark interest rate. The historically high interest rate has made borrowing more expensive through loans such as mortgages and credit cards.

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