The United States experiences a decrease in inflation to 3.4 percent

The US inflation rate continued to exceed the central bank’s target in April. While consumer prices inflation slowed slightly compared to March, with a rate of 3.4 percent, it was still higher than anticipated by economists. This slight reduction was reflected in a 0.3 percent increase in consumer prices from the previous month.

Numerous categories saw price increases in April, with energy, food, services, and housing all becoming more expensive compared to a year ago. Core inflation, which excludes the impact of volatile energy and food prices, was at 3.6 percent, indicating a broader measure of inflation.

The central bank has been actively tightening monetary policy in an effort to tame inflation. Despite initially halting this tightening in June, the bank resumed it in July and has since maintained a policy rate range of 5.25-5.50 percent.

Recent data showing higher inflation rates than anticipated have led many economists to predict that the central bank will not lower interest rates until the fall. This is supported by the central bank’s cautious approach to reaching its two percent inflation target, as highlighted by CEO Jerome Powell.

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Inflation remains a significant concern for Americans as they continue to struggle with rising costs across multiple categories. However, despite these challenges, experts remain optimistic that the central bank’s efforts will eventually lead to more stable pricing conditions for consumers down the line.

By Sophia Gonzalez

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