Core inflation remained more or less unchanged last month, a setback for anyone hoping the Federal Reserve will move quickly to lower interest rates. Cuts are even less likely in the near term because the latest trade negotiations with China should reduce the threat of a U.S. recession this year.
Core inflation, which excludes the more volatile food and energy costs, measured 2.8% year over year in April. That is in line with economists’ expectations that core CPI would remain steady for a second consecutive month.
On a monthly basis, however, core inflation measured 0.2% month over month in April. That’s a slower climb than economists anticipated, with the consensus forecast coming in at 0.3%. But it is a bit of an uptick from March’s monthly gain of 0.1%.