Inflation & Prices
US Inflation Shows Signs of Moderating, Giving Fed Room to Pause
- Consumer prices rose 4.9% on an annual basis, below forecast
- Narrow service measure watched by Fed also cooled in April
US inflation showed signs of moderating in April, giving the Federal Reserve room to pause interest-rate increases soon.
The consumer price index rose by 4.9% from a year earlier, the first sub-5% reading in two years, a Bureau of Labor Statistics report showed Wednesday. Excluding food and energy, the so-called core consumer price index also cooled slightly.