The annual inflation rate in the US, the most anticipated US economic release of the week, fell to 4.9% in April 2023, the lowest since April 2021, and below market forecasts of 5%.
Food prices grew at a slower rate (7.7% vs 8.5% in March) while energy costs fell even further (-5.1% vs -6.4%) including gasoline (-12.2%) and fuel oil (-20.2%).
Shelter cost, which accounts for over 30% of the total CPI basket, slowed for the first time in twenty four months (8.1% vs 8.2%) and prices for used cars and trucks declined once again (-6.6% vs -11.6%).
Compared to the previous month, the CPI rose 0.4%, much higher than 0.1% in March but it matched market expectations.
Shelter was the largest contributor to the monthly all-items increase, followed by used cars and trucks and gasoline.
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