US Inflation Slowed Last Month For The First Time Since August

• US inflation took a breather last month for the first time since August. Prices still increased, but at a slower pace than in previous months. 
• The Consumer Price Index was up 8.3% in the 12 months ended in April, the Bureau of Labor Statistics reported Wednesday, slightly higher than economists had predicted. It was a decrease from the 8.5% recorded in March, which had been the highest level in more than 40 years. 
• Stripping out more volatile product categories like food and energy, the CPI stood at 6.2% over the same period, less than the 6.5% reported in March. 
• For April alone, prices increased by 0.3%, adjusted for seasonal swings, less than the 1.2% jump recorded in March. Without food and energy prices, core inflation rose 0.6%, more than the 0.3% advance in the prior month. 
• The increase in core inflation is making economists nervous. Businesses have been building up their inventories, which helps core inflation on the goods side, while prices in the services sector are soaring as Americans return to traveling and other leisure activities. The latter will likely make for stickier inflation that takes longer to come down again.

(Source: Reuters)