The so-called core inflation, where food and energy prices have been stripped away, stood at 2.8 percent – unchanged compared to March.
Analysts had on average counted on unchanged inflation levels according to both measures, according to a compilation of forecasts made by Bloomberg.
Compared to the previous month, consumer prices rose less than expected, both with and without food and energy prices.
Risk appetite increases on the market
The figures increase the risk appetite on the market and push up prices in futures trading ahead of Tuesday's start on Wall Street. They also create a downward pressure on American market interest rates and the dollar.
As for the Stockholm stock exchange, the krona and Swedish market interest rates, the reaction is barely measurable.
Food prices in the USA fell by 0.1 percent in April compared to the previous month. But the price of the food that consumers buy home fell more clearly: down by 0.4 percent. It is the largest decline since September 2020.
Egg prices fell by 12.7 percent in April compared to March, the largest decline since 1984. And prices of frozen vegetables and fruits fell by 3 percent, the largest price drop that has been measured in the USA.
Air ticket prices also fell, down by 2.8 percent compared to March – which is likely due to decreased demand.
Interest rate cut expected first in autumn
USA's president Donald Trump has claimed that the inflation pressure in the USA is so low that the USA's central bank Federal Reserve (Fed) should lower the key interest rate. According to the pros on the interest rate market, it will however take until September before an interest rate cut in the USA becomes relevant.
Many assessors and market actors are worried that the customs shock that the Trump administration struck in April will create an upward pressure on inflation in the USA, which would prevent stimulus with interest rate cuts even if growth slows down.
