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Inflation In The U.S. Slowed To 0.3% In April

Inflation in the U.S. rose 0.3% in April from March, less than economists had expected.

The consensus view was for inflation to rise 0.4% month-over-month in April. On an annualized basis, inflation in America increased 3.4%, which matched forecasts.

The U.S. Labor Department said that, excluding food and energy, core inflation came in at 0.3% monthly and 3.6% on an annual basis during April, which also matched economic forecasts.

Price gains during April were largely driven by increases in shelter and energy costs.

Shelter costs rose 0.4% for the month and were up 5.5% from a year ago. At the same time, energy costs rose 1.1% during the month and were up 2.6% on an annual basis.

Food costs were flat in April but up 2.2% from a year ago, while used vehicle prices declined 1.4% on a monthly basis, continuing a downward trend.

The latest inflation data has caused relief and sent the stock market higher in pre-market trading as investors bet that the U.S. Federal Reserve will hold off on any further interest rate hikes and may lower rates this autumn.

The U.S. central bank targets inflation at an annualized 2%.

Separately, April retail sales were also reported in the U.S. and were flat on the month, compared to an estimate for a 0.4% increase.

The latest retail sales suggest that consumer spending is beginning to slow across America.