Key inflation measure eases, suggesting price increases could be slowing
The personal consumption expenditures price index, also known as "the Fed's favorite inflation measure" rose 6.3 percent in April from a year ago, in a sign that inflation might be slightly moderating, CBS and The Associated Press report, per the Commerce Department.
Though still elevated, April's number represents the first slowdown since November 2020, and clocks in just below a four-decade high set in March, CBS and AP write.
Consumer spending also rose a "healthy" 0.9 percent from March to April, "outpacing the month-to-month inflation rate for a fourth straight time," the outlets report. Americans' willingness to spend despite inflation is helping to sustain the economy, though it also threatens to keep prices high.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"The rise in inflation-adjusted spending in April shows consumers are resilient, for now," said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. "With inflation still uncomfortably high, the labor market strong and household spending maintaining positive momentum, the Fed will stick with its plan to raise rates by 50 basis points at the next two meetings."
Though the April report showed some progress, "gas will be a factor again when the May numbers come out next month," CNBC notes.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brigid Kennedy worked at The Week from 2021 to 2023 as a staff writer, junior editor and then story editor, with an interest in U.S. politics, the economy and the music industry.
-
The best homes of the year
Feature Featuring a grand turret entrance in New York and built-in glass elevator in Arizona
By The Week Staff Published
-
Nordstrom family, investor to take retail chain private
Speed Read The business will be acquired by members of the family and El Puerto de Liverpool, a Mexican real estate company
By Peter Weber, The Week US Published
-
Biden commutes most federal death sentences
Speed Read The president downgraded the punishment of 37 of 40 prisoners on death row to life in prison without parole
By Peter Weber, The Week US Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published