05/15/2024

Inflation Eases for First Time in 2024

Some wonder if it will be enough for the Fed to cut rates

The first few months of the year brought back the specter of rising inflation during a long fight to bring prices back under control. On Wednesday, the first signs of optimism in 2024 arrived.

New data released from the Bureau of Labor Statistics (BLS) showed prices rose 3.4 percent in April compared with the year before. That is down a bit from the 3.5 percent notched in March, and the shift follows months of hotter-than-expected reports. Prices rose 0.3 percent compared with the month before.

In a particularly encouraging note, a key reading of inflation known as "core" — which strips out more volatile categories like food and energy — rose 0.3 percent. That measure was up 3.6 percent on an annual basis, the lowest year-over-year increase since 2021. Policymakers pay close attention to that gauge because it helps them tease out stickier sources of inflation from the kinds of rising prices that typically bounce around month to month.

Please select this link to read the complete article from The Washington Post.