Dhe inflation in the USA is clearly losing momentum. From April to May, consumer prices rose by only 4.0 percent compared to the same period last year. In April 2023, inflation in the world‘s largest economy was still 4.9 percent. This was announced by the Department of Labor on Tuesday in Washington. On average, analysts had expected a decline to 4.1 percent. The current rate is the lowest since March 2021.
Core inflation fell to 5.3 percent from 5.5 percent. At this rate, the volatile energy and food prices exempt. According to many economists, core inflation reflects the general price trend better than the overall rate. Economists had expected a slightly stronger decline of 5.2 percent.
Inflation data are currently the focus of particular attention because they are of great importance for the monetary policy of the US Federal Reserve. The Fed recently raised the prospect of an interest rate pause. The new monetary policy decisions will be published this Wednesday. Experts expect a pause in interest rate hikes.
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