US inflation beat forecasts in April, but still high at 4.9%
US inflation rose 4.9% in April from a year earlier, 0.1% less than expected. The figures show that prices are still sticky, even after a year's worth of Federal Reserve interest rate hikes.
The April rise nearly equaled the 5% increase recorded in March. Although inflation has declined for the 10th consecutive month, prices are still rising at a rate that is more than double the Fed's 2% annual rate target.
Last week, Fed Chair Jerome Powell indicated that the central bank pause rate rises as it assesses the impact of those increases. However, he made clear that rates are likely to remain high as long as inflation remains elevated.
That said, inflation in the US is markedly lower than in other countries. In the Eurozone inflation was 6.9% in March and 10.1% in the UK.
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