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The U.S. Personal Consumption Expenditures Price Index, the U.S. Federal Reserve’s preferred inflation gauge, dipped to 6.3 percent in April, year on year, after registering 6.6 percent in March, the biggest annual gain since January 1982.
April was the first month since late 2020 when inflation’s rate eased instead of accelerated.
Prices moved up 0.2 percent in April from March, when the monthly gain was a startling 0.9 percent as energy prices spiked.
At an annualized rate, the index added 4 percent in April, compared with 4.4 percent in March, the smallest gain since September 2021.
Disposable income added 4 percent in April, which rendered purchasing power no different than the month before.
TREND FORECAST: Inflation rate rises may slow somewhat this summer as China reopens and supply lines begin to untie their knots.
However, as we note from the manmade and Nature crises, it will not reverse in any sustained or meaningful way yet.
Shortages of goods caused by the Ukraine war and western sanctions, poor weather in growing seasons, and a scarcity of computer chips and other essentials will take years to resolve, keeping upward pressure on prices for the foreseeable future.