US inflation drops to 3.4% in April

Down from 3.5% in March

US inflation fell to 3.4% in April, down from 3.5% the previous month, fuelling bets on interest rate cuts by the Federal Reserve later this year.

According the Bureau of Economic Analysis (BEA), core CPI reached 3.6% year-on-year, the lowest level since April 2021. The headline figure fell in line with economists' predictions and comes a day after Federal Reserve chair Jay Powell said the central bank would have to keep interest rates higher for longer as it tries to tackle wages inflation and a rise in wages. On 1 May, the Federal Reserve decided to keep the interest rate steady at 5.25% to 5.5%, the highest since 2007. Meanwhile, April's CPI came against the backdrop of weaker than expected retail sales in March, which rem...