Inflation cools slightly to 3.4%

WASHINGTON (NEXSTAR) – After three months of data showing an uptick in inflation Wednesday’s numbers show some slight relief, with inflation easing slightly, in line with economists’ predictions.

The Labor Department report shows inflation slowed to 3.4% from a year ago.

That’s down slightly from the past three months of year-to-year increases.

The March report showed inflation at 3.5%.

This month’s report showed food prices remained flat but rent prices were up slightly.

Prices for cars were also down a bit, according to the latest data.

Overall, the report was in line with what many economists had predicted.

However, the summer could bring some volatility as energy prices typically rise, which could impact the inflation rate.

It’s also unclear how the latest numbers will impact interest rates as the fed considers when to lower interest rates.

 “The Federal Reserve has not said anything specific about when it would be appropriate to lower rates other than when the Federal Open Market Committee members attain greater confidence that inflation is moving down to their 2% target…we would not expect the fed to be changing its benchmark interest rate, let’s say, for the next three months or so,” said Mark Hamrick of Bankrate.

Fed chair Jerome Powell said Tuesday he expects inflation to continue moving down.

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