The Strategist

US inflation slows to 4.9% in April

05/11/2023 - 11:22

Inflation in the United States decreased in April to 4.9 percent annually, which is the lowest since April 2021.

The information was presented by the U.S. Division of Labor on May 10. Thus, the US inflation rate has been decreasing for the eleventh consecutive month. It was 5% in March and reached a height of 9.1% in June of last year.

April saw a 5.1% year-over-year decline in energy prices. However, there was still a sizable price increase for a number of different goods and services. For instance, the cost of transportation climbed by 11%, the cost of eating out increased by 8.6%, and the cost of food increased by 7.1%.

The Fed's initiative to control inflation (by hiking the key rate) is succeeding, but more slowly than the government would want, according to the data. However, the news about the inflation is quite encouraging for the financial markets, according to Quincy Krosby, director of global strategy at LPL Financial brokerage company.