Long Road to Recovery for US Inflation
Inflation slowed in April after seven months of surging, a signal that prices may already have peaked. However, inflation still has a long way to go. Consumer prices rose 8.3% in April, down slightly from the 8.5% year-over-year surge in March, per a government report.
"The Federal Reserve has signaled that it is all-in on fighting inflation but calming year-over-year growth from its current 8% range to something closer to the Fed's 2% target will be an effort that stretches into 2023," PNC economist Kurt Rankin told The Wall Street Journal.
The slight drop in prices is a positive sign, but we are not even close to being out of the woods. "Turmoil overseas could accelerate inflation in the coming months," reads an article from the Associated Press. "If the European Union, for example, decides to bar imports of Russian oil, world oil prices could rise. So could U.S. gas prices. And China's COVID lockdowns could worsen supply chain snarls."