U.S. Inflation Fears Cool On Tariff Climbdown And Softer Services
2025-05-13 10:30:00 ET
Summary
- US CPI rose 0.2% month-on-month for both headline and core in April, below the 0.3% readings expected.
- Headline inflation is down to 2.3% YoY from 2.4%, which is the lowest reading since February 2021, while core - ex food and energy - remains at 2.8% YoY.
- With the price hike threat from tariffs receding thanks to recent agreements and with leading housing indicators pointing to a cooling in shelter costs, there will continue to be scope for Federal Reserve interest rate cuts later in the year.
US inflation undershoots with shelter set to become a more important influence
US CPI rose 0.2% month-on-month for both headline and core in April, below the 0.3% readings expected. This means headline inflation is down to 2.3% year-on-year from 2.4%, which is the lowest reading since February 2021, while core - ex food and energy - remains at 2.8% YoY....
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