Skip to Main Content

For the First Time Since August – United States Inflation has Slowed

During April, United States inflation increased at its slowest rate in nearly 10 months. Although the price of consumer goods did increase, it did at a much slower rate than months prior.

Consumer Price Index Lower Than March

According to the Bureau of Labor Statistics, The Consumer Price Index(CPI) was at 8.3% at the end of April. Although this is slightly higher than the inferences made by economists, it is still lower than the historic 8.5% CPI in March, which was the highest level the United States has seen in nearly half a century.

Biden Addresses Inflation

When answering questions last week, Biden called inflation prices “Unacceptably High” and that “bringing it down is his top economic priority”. He also went on mention Vladimir Putin’s price hike, the supply chain issues, and the pandemic citing these as some of the main causes of U.S. inflation, and said that his administration will fight against these things “day after day”.

Worst Behind Us?

The data provided by the Bureau of Labor Statistics suggest that inflation has already hit its peak and the worse could already be behind us, but there are a lot of factors to consider before making that assumption.

Due to the global conflict involving Ukraine, the United States has seen its energy and food prices suffer dramatically. On top of the conflict, the U.S. has been battling supply chain issues along with the rest of the world. It will be very difficult for U.S. inflation to slow down in the long term unless these controversies are solved.

April Breakdown

According to the Bureau of Labor Statistics, food prices rose 0.9% since March and almost 9.5% year over year which is the biggest leap the United States has seen since April of 1981. Grocery Store prices in April also went up 10.8% for the year ended in April. This is the largest Jump for the country since November of 1980, according to the same report.

The prices of a few key things fell during April. Gasoline prices came down slightly from their record high price in March, causing a slight fall in energy prices for the United States, according to the Bureau of Labor Statistics data.

Wrap Up

Inflation slowing down last month is certainly a good sign, but there are still dilemmas needing to be addressed. With the prices of consumer goods continuing to rise, talk with your accountant or advisor to find out ways to optimize your financials during these unknown times.

 
This entry was posted in Blog, News & Articles and tagged , , , , . Bookmark the permalink. Follow any comments here with the RSS feed for this post. Both comments and trackbacks are currently closed.