"As the economy slows, consumer prices will decelerate further and should bring inflation closer to the Fed's long-run target of 2%," Roach said. Markets were still pricing in a 65% chance of a final 0.25 percentage point interest rate increase at the Fed's May meeting, though that was slightly lower than Tuesday, according to the CME Group.Įxcluding shelter, the CPI rose 3.4% from a year ago, according to Jeffrey Roach, chief U.S. Stock market futures rose sharply while Treasury yields fell following the report. Shelter makes up about one-third of the weighting in the CPI and is being watched closely by Fed officials. Egg prices, which had been soaring, tumbled 10.9% for the month, putting the 12-month increase at 36%.Ī 0.6% increase in shelter costs was the smallest gain since November, but still resulted in prices rising 8.2% on an annual basis. Food at home fell 0.3%, the first drop since September 2020, though it is still up 8.4% from a year ago. The headline annual increase for the CPI was the smallest since June 2021.Ī 3.5% drop in energy costs and an unchanged food index helped keep headline inflation in check. Policymakers target inflation around 2% as a healthy and sustainable growth level. The data showed that while inflation is still well above where the Fed feels comfortable, it is at least showing continuing signs of decelerating. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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