Inflation Remains Stubbornly Above Fed Target

The Consumer Price Index increased 0.3% in April, down from 0.4% in March, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the-all items index increased 3.4% before seasonal adjustment, down slightly from the 3.5% increase for the 12 months ending in March. Inflation continues to remain above the Federal Reserve’s 2% annual inflation target, and while some are betting that the Fed will begin decreasing interest rates before the election, analysts are projecting that interest rates may not be cut at all this year.  

The indexes for shelter and gasoline increased in April. Combined, these two indices contributed to over 70% of the monthly increase. Click here for the press release.