U.S. CPI Increases 0.2% in April as Annual Rate Hits Four-Year Low
Inflation showed signs of easing in April, with the year-over-year Consumer Price Index (CPI) dropping to its lowest rate in over four years.
- The April CPI rose 0.2%, below the 0.3% forecast, and up from -0.1% in March.
- Year-over-year CPI increased by 2.3%, the slowest since February 2021, compared to a forecast of 2.4%.
- Core CPI rose 0.2% in April, up from 0.1% in March but less than the expected 0.3%.
- Core CPI year-over-year remained flat at 2.8%, in line with forecasts.
- Bitcoin traded at $103,800 following the inflation data release.
- U.S. stock index futures shifted from losses to gains; the 10-year Treasury yield decreased to 4.44%.
Federal Reserve Outlook
- The CPI data is unlikely to prompt Federal Reserve rate cuts.
- Current market predictions show an 11% chance of a June rate cut, down from 80% a month ago.
- There’s a 62% chance the Fed will maintain rates through July, compared to 7% a month ago.
- Fed Chair Jay Powell indicated there’s no rush for rate changes, supported by recent inflation trends.