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Last minute: US inflation information announced, fell from the peak of 40 years

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Inflation in the US fell from a 40-year high, as price drops in consumer goods and epidemic measures in China caused power prices to cool.

According to the news in Bloomberg HT; In April, annual inflation in the country was announced as 8.3 percent.

The expectation of economists was that the increase in consumer prices in the USA in April would be 8.1 percent compared to the same period of the previous year.

CPI increased by 8.5 percent in March, reaching the highest level of the last 40 years.

At its May meeting, the Fed had increased interest rates by 50 basis points for the first time since 2000. Leader Jerome Powell gave the signal in the June and July meetings that an increase of 50 basis points in interest rates is on the table.

PCE inflation, followed closely by the Fed, increased by 6.6 percent annually in March. This rate was recorded as the highest level in 50 years.


The latest statements from Fed members before the inflation data showed that the signals for a 50 basis point increase were stronger.

Atlanta Fed Leader Raphael Bostic said he wants to see a 50 basis point rate hike at each of the next two meetings. Bostic also noted the need for the Fed to be open to selling mortgage-backed securities in the future. Christopher Waller, on the other hand, stated that the interest rate hike process is not the Volcker moment, and that the economy can withstand these increases.

Cleveland Fed Leader Loretta Mester also reinforced the pronunciation of interest rate hikes by 50 basis points at two meetings. Mester still left the door open for a 75 basis point increase if inflation remained high.

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