Inflation stood at 4.9% in April

The Consumer Price Index (CPI) stood at 4.9% in April, down 0.1% from March, according to data released by the Bureau of Labor Statistics (BLS).

Analysts expected inflation in April to remain at 5%, the same level as March's level. This decline shows that the CPI deceleration trend is still underway, albeit at a very slow pace. This is the 10th consecutive month that the CPI has dropped.

Cpi by Verónica Silveri

Core inflation falls

Core inflation, which excludes food and energy, declined from 5.6% in March to 5.5% in April.

"The index for shelter was the largest contributor to the monthly all items increase," followed by increases in fuel and used car prices. Energy rose 0.6% in April (after falling 3.5% in March) and the food at home index fell 0.2%, while food away from home rose 0.4%. According to the report:

On an annual basis, the energy index decreased by 5.1% in the past 12 months, and the food index increased by 7.7% in the last year.

Influence on the Fed and interest rate hikes

Last week, the Federal Reserve (Fed) hiked interest rates by 25 basis points, with a new target range between 5% and 5.25%, the highest in the last 16 years. The CPI data will determine whether the Fed decides to continue raising rates or pause. Experts predict that the rate will begin to decline during the second half of the year.

The constant moderation of the CPI in recent months has generated optimism in the financial markets.