April CPI Reading Shows Inflation Easing and 3.4% Annual Increase; In-Line with Expectations

Stock market indices are on the rise following the latest Consumer Price Index (CPI) report, indicating a slowdown in inflation for April, aligning with economists’ forecasts.

Last month, the consumer-price index increased by 3.4% compared to the previous year. Core prices, excluding volatile food and energy items, rose by 3.6%.

This report follows a series of unexpectedly high inflation figures, prompting traders to reconsider their expectations for interest rate cuts. However, recent economic data has renewed optimism, suggesting that rate cuts may still be on the table.

On Tuesday, before the release, the Nasdaq hit an all-time peak as other indicies reached close to record highs. In addition to CPI, headline April retail sales were also released and came in flat m/m below consensus for a rise of 0.40%. March’s headline was revised down to 0.6% pace (was 0.7%). The 10-year Treasury yield also has declined going into its third consecutive day.

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April CPI Reading Shows Inflation Easing and 3.4% Annual Increase; In-Line with Expectations

Ashlee Vogenthaler

Markets Editor