Ad Banner
Advertisement by Open Privilege
United States

Inflation cools further as Core Consumer Prices post smallest gain in over 2 years

Image Credits: UnsplashImage Credits: Unsplash
  • The core Consumer Price Index (CPI), which excludes volatile food and energy prices, rose by just 0.3% in April, marking the smallest monthly increase since October 2021. This suggests that underlying inflationary pressures are easing.
  • The moderation in core inflation could influence the Federal Reserve's monetary policy, potentially allowing for a pause in interest rate hikes. However, with core inflation still above the Fed's 2% target, further rate increases remain a possibility.
  • While overall inflation showed signs of cooling, certain sectors like housing and gasoline continued to see price increases. Conversely, food prices remained flat, and costs for items like used cars and medical care services rose more slowly.

The latest inflation data released by the Labor Department indicates that price pressures in the United States may be starting to ease. The core consumer price index, which excludes volatile food and energy costs, rose by just 0.4% in April from the previous month. This marks the smallest monthly increase since October 2021, providing a glimmer of hope in the ongoing battle against stubbornly high inflation.

"The deceleration in core prices will be welcome news for Fed officials who have been struggling to bring inflation back down to their 2% target," said Kathy Bostjancic, chief economist at Nationwide. The Federal Reserve has been aggressively raising interest rates in an effort to cool demand and bring prices under control.

While the overall consumer price index rose 4.9% from a year earlier, down from 5% in March, the moderation in core prices suggests that the central bank's efforts may be starting to bear fruit. "The slowdown in core inflation is a positive development and suggests that the Fed's rate hikes are having their intended effect of dampening demand and easing price pressures," said Michael Pearce, senior U.S. economist at Capital Economics.

However, it's important to note that inflation remains well above the Fed's 2% target, and further progress will be needed to bring it back to more acceptable levels. "While the moderation in core inflation is encouraging, it's still too early to declare victory in the fight against inflation," cautioned Pearce.

There are some areas where price growth remains elevated, such as shelter costs, which rose 0.5% in April and accounted for nearly two-thirds of the overall increase in core prices. This underscores the persistent nature of inflation and the challenges faced by policymakers in addressing it.

As the Federal Reserve prepares for its next policy meeting in June, the latest inflation data will undoubtedly factor into their decision-making process. While the moderation in core prices may provide some relief, the central bank is likely to remain vigilant and continue its efforts to bring inflation under control.


Ad Banner
Advertisement by Open Privilege
Economy World
Image Credits: Unsplash
EconomyApril 25, 2025 at 1:30:00 PM

China considers tariff exemptions amid trade war

[WORLD] China is exploring the possibility of exempting certain U.S. imports from its steep 125% retaliatory tariffs, marking the strongest indication yet that...

Economy World
Image Credits: Unsplash
EconomyApril 24, 2025 at 4:00:00 PM

US-China trade tensions: No negotiations confirmed

[WORLD] China’s Ministry of Commerce on Thursday refuted claims of ongoing trade negotiations with the United States, stating that reports suggesting progress in...

Economy Malaysia
Image Credits: Unsplash
EconomyApril 24, 2025 at 2:00:00 PM

Malaysian firms eye Uganda’s oil fields amid shrinking domestic reserves

[MALAYSIA] Malaysian companies have been invited to compete for unexplored petroleum fields in Uganda, as the Southeast Asian nation’s oil and gas sector...

Economy United States
Image Credits: Unsplash
EconomyApril 24, 2025 at 12:30:00 PM

Trump administration weighs auto tariff reductions amid industry pressure

[UNITED STATES] The Trump administration is weighing the possibility of reducing certain tariffs imposed on the automotive industry, which executives have warned could...

Economy World
Image Credits: Unsplash
EconomyApril 24, 2025 at 11:00:00 AM

Hong Kong stocks drop as US rules out unilateral tariff cuts

[WORLD] Hong Kong stocks slipped on Thursday, ending a three-day winning streak, after investor sentiment took a hit following remarks from US Treasury...

Economy Malaysia
Image Credits: Unsplash
EconomyApril 24, 2025 at 10:30:00 AM

Malaysia’s inflation eases in March amid public cost-of-living concerns

[MALAYSIA] Malaysia’s headline inflation rose at a slightly slower pace of 1.4% in March 2025, easing from 1.5% in February, in line with...

Economy World
Image Credits: Unsplash
EconomyApril 24, 2025 at 7:30:00 AM

Oil prices drop as OPEC+ weighs output hike amid trade and supply uncertainties

[WORLD] Oil prices fell 2% on Wednesday as sources claimed Opec+ will consider increasing oil supply in June, although losses were limited by...

Economy World
Image Credits: Unsplash
EconomyApril 23, 2025 at 10:30:00 AM

US-China trade war disrupts LNG contracts

[WORLD] Analysts suggest that Chinese state-owned energy companies and private gas suppliers might need to renegotiate their long-term liquefied natural gas (LNG) contracts...

Economy Malaysia
Image Credits: Unsplash
EconomyApril 23, 2025 at 10:30:00 AM

Tariff talks shape Bursa outlook

[MALAYSIA] Bursa Malaysia's market outlook is poised for significant shifts as ongoing tariff negotiations, particularly with the United States, introduce new uncertainties. While...

Economy World
Image Credits: Unsplash
EconomyApril 23, 2025 at 10:00:00 AM

China’s energy-storage sector braces for tough year amid trade war and policy shifts

[WORLD] China’s energy-storage industry is bracing for a turbulent year, as intensifying trade frictions with the United States and diminishing government backing weigh...

Economy Malaysia
Image Credits: Unsplash
EconomyApril 23, 2025 at 10:00:00 AM

Palm oil prices steady amid global shifts

[MALAYSIA] Malaysian crude palm oil (CPO) prices are projected to maintain a stable range of RM3,900 per metric ton throughout the second quarter...

Economy Malaysia
Image Credits: Unsplash
EconomyApril 23, 2025 at 10:00:00 AM

Malaysia braces for US trade talks amid tariff tensions

[MALAYSIA] Malaysia can expect to face pressure to boost agricultural imports from the US and align closer to the world’s largest economy as...

Ad Banner
Advertisement by Open Privilege
Load More
Ad Banner
Advertisement by Open Privilege