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The inflation rate slowed in April, falling to under 5% for the first time since June 2021. However, the consumer price index rose by 4.9% year-over-year, according to data released by the U.S. Bureau of Labor Statistics.
While inflation has slowed over the last year, the monthly CPI rose 0.4%, marking a 0.3% increase from March.
The core inflation metric, which removes food and energy prices, was up by 5.5%.
The current rate of inflation is still well above the Federal Reserve's target of 2% inflation. To combat inflation, the Federal Reserve has been hiking interest rates. Last week, the Fed announced its tenth straight rate hike, bringing interest rates to the highest levels in 16 years. However, the Fed suggested that additional rate hikes may not be necessary to bring inflation under control.
"Today's reports suggests that the Fed's campaign to quell inflation is working, albeit more slowly than they would like," said Quincy Krosby, chief global strategist at LPL Financial, according to CNBC. "But for financial markets ... today's inflation print is a net positive."