The Highest Inflation Drop After 12 Years in the USA

The highest inflation decline occurred in the USA after 12 years. The Consumer Price Index dropped 0.8 percent in April and experienced the highest monthly decline since December 2008. The U.S. Department of Labor shared the CPI data for April. According to the data released by the US Department of Labor, the cost of living of American consumers decreased by 0.8 percent in April compared to the previous month. Data, showing the highest monthly decline since December 2008, are in line with market expectations. On the other hand, CPI decreased by 0.4 percent in March. Consumer prices in the United States increased by 0.3 percent in April compared to the same month last year. This data was recorded as the lowest annual increase since October 2015. The annual change in CPI also fell short of the market expectations expected to increase by 0.4 percent. Annual inflation was calculated as 1.5 percent in March. The decrease in fuel costs was an important reason for the fall in consumer prices recorded in April, while items such as clothing, air transportation charges and accommodation also had an impact on this drop. In this period, food prices increased. Core CPI, which does not include variable energy and food prices, also fell 0.4 percent month on month in April. The market expectation about core CPI, which recorded the lowest monthly decline since 1957 when data began to be announced, was down 0.2 percent in this period. Core inflation remained below the market expectation of 1.7 percent, with an annual increase of 1.4 percent. This data was recorded as the lowest increase since April 2011 with this value.