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USA: Inflation grows 0.3% monthly in April compared to the expected 0.4%

He United States Consumer Price Index (CPI) grew by 0.3% in the monthly reading for April after increasing 0.4% in March, as published by the Department of Labor. The figure is below the 0.4% estimated by the market.

The annual inflation has been at 3.4%in line with expectations, one tenth below the 3.5% of the previous month.

He Underlying CPI, which excludes food and energy, rose 0.3% in April, meeting forecasts, after increasing 0.4% in March. Finally, the Annual core inflation has reduced two tenths to 3.6% from 3.8% previously, as expected. This is the lowest level recorded by the indicator in three years.

dollar reaction

The Dollar Index (DXY) has fallen with the publication of the data, since the moderation in monthly general inflation can be interpreted as a first test for the Fed to begin contemplating a first cut in interest rates. The DXY has fallen to 104.43 from around 104.75. At the time of writing, the greenback index is trading around 104.58, losing 0.41% on the day.

Source: Fx Street

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