CPI Report Shows Lower-Than-Expected 4.9% Inflation Rate in April

The United States has made an official announcement regarding the Consumer Price Index (CPI) for April, revealing that its annual rate stands at 4.9%, as opposed to the expected rate of 5.00% and the previous rate of 5.00%. In the same month, the core CPI annual rate recorded 5.5%, aligning with predicted estimates of 5.50% and a decrease from the previous rate of 5.60%.

The release of this information has had a significant impact, as the probability of no rate hike in June has increased to 92%, according to the Chicago Mercantile Exchange (CME). This lower-than-anticipated CPI has provided the Federal Reserve with the opportunity to pause its rate hikes, given the slight ease in U.S. inflation rates in April.