US inflation falls to the lowest level in two years

The rate of CPI inflation in the US slowed to its lowest rate since April 2021, suggesting the Federal Reserve’s rate hikes may be coming to an end.

federal reserve
(Image credit: © Getty Images)

The rate of inflation in the United States slowed to its lowest rate in two years in April, indicating the Federal Reserve’s efforts to lower prices by hiking interest rates might be starting to work.

The Consumer Price Index (CPI), which measures the cost of a basket of goods, rose 0.4% in April and 4.9% over the last 12 months, but this was a deceleration from 5% the month before. The latest CPI read suggests prices are rising at the slowest rate since April 2021.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Nic studied for a BA in journalism at Cardiff University, and has an MA in magazine journalism from City University. She has previously worked for MoneyWeek.