Inflation has put the brakes on. Bitcoin has consolidated above $64,000
Annual inflation in the US slowed from 3.5% to 3.4% in April, in line with the consensus forecast.
On a monthly basis, the consumer price index rose 0.3% against expectations of 0.4% and the same value for March.
The index excluding food and energy prices increased by 0.3% versus the previous month and by 3.6% versus April last year. A month earlier the values amounted to 0.4% and 3.8% respectively. Monthly dynamics slowed down for the first time in the last six months.
Analysts expected the annual rate to slow to 3.6%, monthly - to 0.3%.
Prices for services, excluding housing and energy, rose 0.4% from March, the weakest reading this year, according to Bloomberg. The Fed noted the importance of the metric in analyzing the trajectory of inflation.
At the same time with CPI came the data on retail sales. The indicator was unchanged from March, with a consensus forecast of 0.4% growth. The indicator excluding transportation grew by 0.2% in April, which matched economists' expectations.
"This opens the door for a possible rate cut later this year. It will take a few more metrics pointing to lower inflation for the Fed to act," commented Charles Schwab chief strategist Cathy Jones.
