Thursday’s US CPI report will likely show the 6th consecutive month of lower YoY CPI and an inflation rate below 7% for the first time since November 2022.
The US Department of Labor’s Bureau of Labor Statistics is expected to release its Consumer Price Index (CPI) report on Thursday. The report will likely show the sixth consecutive month of lower year-over-year (YoY) CPI and an inflation rate below 7% for the first time since November 2022.
Analysts forecast that the CPI will decline 0.2% in April compared to March, with the YoY rate falling to 6.6%. This would be the lowest inflation rate since November 2022 when it fell to 6.5%.
The decline in inflation is largely attributed to the decline in fuel prices, which have been falling since January. The drop in fuel prices is a result of the drop in global demand brought on by the pandemic. Other factors contributing to the decline include weak consumer spending, a strong US dollar, and low food prices.
The Federal Reserve has repeatedly stated that it is not concerned about inflation at present, suggesting that it is likely to remain below the 2% target for the near future. The Fed has also noted that it does not anticipate any significant changes in prices in the near future.