US Inflation Rate Eases To 4.9% In April, Less Than Expectations

• The annual Consumer Price Index (CPI) rose to 4.9% for the year to April (March 2023: 5%), slightly less than the 5% estimate and the lowest annual pace since April 2021.
• Excluding volatile food and energy categories, core CPI rose 0.4% monthly and 5.5% from a year ago, both in line with expectations. Markets reacted positively to the news, with futures turning positive as Treasury yields were lower.
• The CPI reading has cooled considerably since peaking out at around 9% in June 2022. However, inflation still has held well above the Fed’s 2% annual target.
• The CPI reading comes just days after the Bureau of Labour Statistics (BLS) reported that nonfarm payrolls increased by 253,000 in April, above expectations and indicative that the labour market is still hot despite Fed efforts to cool demand.

(Source: Reuters)