United States: Inflation falls to an almost three year low in April
May 16, 2013
In April, consumer prices fell 0.4% over the previous month in seasonally adjusted terms, which followed the 0.2% drop recorded in March. The result came in below market expectations, which saw prices falling only 0.3%. The print mainly reflects lower prices for energy, in particular for gasoline, as well as for fruit and vegetables.
Building on the monthly drop, annual inflation slowed from 1.5% in March to 1.1% in April, reaching the lowest rate since June 2010. Meanwhile, the core inflation index, which excludes food and energy, added 0.1% over the previous month, which matched the result seen in March and was slightly below market expectations of a 0.2% increase. As a result, annual core inflation was unchanged at March's 2.0%.
Annual average inflation over the previous 12 months maintained its downward trend, falling from 1.9% in March to 1.7% in April.
FocusEconomics Consensus Forecast participants expect inflation to average 1.9% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel anticipates average inflation to rise to 2.2%.