Inflation Remains Steady, With Signs of Further Cooling

Inflation in April remained flat, showing signs of progress, according to the Commerce Department. The Personal Consumption Expenditures price index rose by 2.7% compared to the previous year, while inflation, excluding volatile food and fuel prices, remained steady at 2.8% annually. On a monthly basis, inflation did not change significantly, with a 0.3% increase in prices in April. The ‘core’ index, which excludes food and fuel, saw a slight moderation, rising by 0.2% from the previous month. This suggests a slow start to the second quarter, with declines in consumer spending and real incomes, potentially dampening inflation. However, the Federal Reserve is waiting for further evidence of inflation before making any decisions regarding interest rates.