US CPI Inflation Dips to 4.9% in April, Beating 5% Forecast
The US Bureau of Labor Statistics (BLS) announced on Wednesday that US inflation (CPI), dropped to 4.9% year-over-year in April from 5% in March, slightly below the anticipated 5%.
Additional data showed that Core CPI inflation, which excludes volatile food and energy prices, slipped to 5.5% from the expected 5.6%. In monthly terms, both CPI and Core CPI increased by 0.4%, in line with analysts’ projections. Our live coverage provides more insights into the market’s reaction to US inflation data.
According to the BLS report, the largest contributor to the overall monthly increase was the shelter index, followed by rises in the indexes for used cars and trucks, and gasoline. The gasoline index’s growth outweighed declines in other energy component indexes, resulting in a 0.6% increase in the energy index in April. Below you can see inflation numbers around the globe:
INFLATION AROUND THE WORLD
???????? VENEZUELA 155%
???????? ARGENTINA 104%
???????? TURKEY 43%
???????? NIGERIA 22%
???????? UNITED KINGDOM 10.1%
???????? FRANCE 5.9%
???????? INDIA 5.6%
???????? UNITES STATES 4.9%
???????? BRAZIL 4.6%
???????? CANADA 4.3%
???????? INDONESIA 4.3%
???????? RUSSIA 3.5%
???????? JAPAN 3.2%
???????? SAUDI ARABIA 2.7%
???????? CHINA 0.7%— GURGAVIN (@gurgavin) May 10, 2023
Also Read: U.S. Banking Crisis Could See a Staggering 190 Banks Collapse, According to a New Study
Market Reaction
The US Dollar (USD) faced renewed selling pressure following the April inflation report, with the US Dollar Index down 0.3% for the day at 101.30. Additionally, the benchmark 10-year US Treasury bond yield dipped below 3.5%.
Based on the CME Group FedWatch Tool, the likelihood of the Federal Reserve keeping its policy rate steady in June rose to 85% from 79% earlier in the day.
One analyst stated, “The CPI report comes on top of the Nonfarm Payrolls (NFP) figures released less than a week ago, and together there is a compelling case for pausing.”
