US CPI Falls

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Koushik Korampalli
May 19, 2024
Written by Koushik Korampalli
Est read: 0 minutes
  • US CPI inflation fell to 3.4% in April
    • This was a slight drop from 3.5% in March
    • The number hit as economists predicted and not higher which was seen as ‘a relief’
      • Inflation has been rising since the start of 2024
    • Core CPI hit 3.6% in April
    • Core CPI does not account for volatile food and energy prices
    • Rising housing and fuel costs were the 2 biggest causes of the inflation.
  • Stocks closed at record high following this announcement
    • Traders saw the inflation announcement as a sign of potential rate cuts
    • The S&P 500 closed 1.2% higher
    • Nasdaq closed 1.4% higher
    • Oil and gold also rose, and bond yields fell.
  • Interest rates have been at a 20 year high
    • The Fed had hoped to bring rate cuts down this year, but inflation kept stubborn
    • However, this rate announcement may be a ray of hope
  • “…even though we’ve made progress, we have a lot more to do” - President Biden 

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