Key inflation gauge slowed to still-high 6.3% over past year
An inflation gauge closely tracked by the Federal Reserve rose 6.3% in April from a year earlier, just below a four-decade high set in March and the first slowdown since November 2020.
The report added to other recent signs showing that while high inflation continues to cause hardships for millions of households, it may finally be moderating, at least for now.
The report also showed that consumer spending rose by a healthy 0.9% from March to April, outpacing the month-to-month inflation rate for a fourth straight time.
The ongoing willingness of the nation’s consumers to keep spending freely despite inflated prices is helping sustain the economy.