The consumer price index in the United States of America rose to 4.9% in April, which was less than analyst’s expectations of 5.0% and increased 0.4% for the month, in line with the Dow Jones estimate, according to the report by the Labor Department on Wednesday.
Excluding the volatile food and energy prices, core inflation rose 5.5% from last year and 0.4% for the month, both in line with expectations.
The prices for fuel oil, new vehicles and food at home helped offset an increase in shelter, gasoline and used vehicles.
The market is now seeing a 38% chance of rate cuts by July, up from 30% after the Fed delivered a raise of another 25 basis points earlier this month with some insight for a pause in June.
Meanwhile, the odds of an additional rate hike this year are down to 15%.
Still, inflation for April remained higher than the Fed 2% target.