
The inflation was slightly lower than expected in April, when President Donald Trump’s tariff began to hit the slow US economy, according to the Ministry of Labor’s report on Tuesday.
the Consumer price indexThe work statistics office said that the costs of a wide range of goods and services increased by 0.2 % through this month, measure the rate of inflation for 12 months by 2.3 %, which is its lowest level since February 2021. The monthly reading was in line with the estimate of the Dow Jones consensus while the 12 months were slightly less than expectations by 2.4 %.
With the exception of the prices of flying food and energy, Core Core CPI also increased by 0.2 % for this month, while the years are on an annual basis 2.8 %. The expectations were 0.3 % and 2.8 %, respectively.
Monthly readings were slightly higher than they were in March, although prices increases are still far from their highest levels three years ago.
The market’s reaction was slightly to the news, as future securities indicate a slightly decreased and mixed treasury revenue.
Shelter prices again were the main perpetrator to raise the level of inflation. The category, which makes about a third of the alarm weighting, increased by 0.3 % in April, which represents more than half of the total step, according to BLS.
After publishing a 2.4 % chip in March, energy prices flourished, with an increase of 0.7 %. The food saw a decrease of 0.1 %.
The prices of used vehicles witnessed their second consecutive decrease, by 0.5 %, while the new vehicles were flat. The clothes costs were also 0.2 % although medical care services increased by 0.5 %. Health insurance increased by 0.4 %, while car insurance increased by 0.6 %.
Egg prices fell, and decreased by 12.7 %, although they were still 49.3 % from last year.
Although the CPI numbers in April were relatively tame, Trump’s tariff remains a wild card in the form of inflation, depending on where the negotiations are going from now to the summer.
In the long -awaited “Tahrir Day” announcement, Trump slapped 10 % duties on all American imports and said he intends to put an additional mutual tariff for commercial partners. Recently, Trump Trump from his post, with the most dramatic development for 90 days on an aggressive tariff against China while the two sides enter more negotiations.
The markets expect that the president’s softening mode will lead to a lower chance to reduce interest rates this year. Traders expected the Federal Reserve to start mitigating in June, with a total of at least three discounts this year.
Since the developments of China, the market has exited the first reduction to September, with only two this year as the central bank feels less pressure to support the economy, and since inflation has exceeded the goal of the Federal Reserve 2 % now for more than four years.
The Federal Reserve depends on the scale of the Ministry of Commerce to manufacture policies, although the consumer price index numbers in this index. On Thursday, BLS will release the prices of producers about producers, which are seen as a leading indication of inflation.
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