Inflation & Prices
US Inflation Ebbs for First Time in Six Months in Relief for Fed
- Consumer prices rose 0.3% in April, led by shelter and gas
- Softer inflation seen boosting odds of a Fed interest-rate cut
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A measure of underlying US inflation cooled in April for the first time in six months, a small step in the right direction for Federal Reserve officials looking to start cutting interest rates this year.
The so-called core consumer price index — which excludes food and energy costs — climbed 0.3% from March, snapping a streak of three above-forecast readings which spurred concern that inflation was becoming entrenched. The year-over-year measure cooled to the slowest pace in three years, Bureau of Labor Statistics figures showed.