U.S. April Inflation Exceeds Expectations, Fed Rate Cut Expectations Cool Down



On May 12, the U.S. announced April CPI data, with inflation rising again, surpassing market expectations.

The April CPI increased by 3.8% year-on-year, hitting a near two-year high, and rose by 0.6% month-on-month; core CPI also rose both year-on-year and month-on-month, highlighting persistent inflation. The sharp rise in energy prices became the main driver, with energy, gasoline, and fuel oil prices remaining high year-on-year, continuously pushing up the overall price level.

Amidst the continued rebound in inflation, the market’s expectation for a rate cut by the Federal Reserve this year has weakened, with the easing pace further delayed, exerting ongoing influence on global financial markets.
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