The rate of inflation for consumer prices regarding the state of the U.S. economy declined in April, according to the US Department of Labor’s closely watched Consumer Price Index (CPI), which measures how much consumers are spending on their gas, food, and energy.
Jerome Powell, Chairman of the U.S. Federal Reserve, discusses interest rate hikes at a press conference in Washington, D.C., on May 4, 2022.
Consumer goods and services inflation is presently at 8.3 percent, down 0.3 percent from the previous month. Energy costs, which fell 2.7 percent after jumping 11 percent in March, are contributing to the downturn.
Food and gas costs are excluded from the CPI, which is a broad measure of inflation. From 0.3 percent in March to 0.6 percent last month, core inflation has more than doubled.
Even if inflation has reached its high, a slower-than-expected decrease indicates that reducing inflation will take longer than anticipated. Interest rate hikes raise the cost of borrowing, thereby slowing economic development.