US Inflation, which climbed by 8.3 per cent in March, is expected to begin moderating according to experts. Prices are predicted to have climbed 0.2 per cent from the previous month, slower than the 1.2 per cent rise recorded in March that was fuelled by soaring energy and food costs tied to Russia’s invasion of Ukraine.
“We think that the data will help to confirm that we have hit peak inflation,” said Matthew Luzzetti, chief U.S. economist at Deutsche Bank. “While there is a lot of focus on that question, I don’t think it is the most important question.”
The Fed is lifting interest rates to try to keep inflation from galloping out of control in a lasting way. Policymakers lifted their main policy interest rate for the first time since March 2018, then followed that up with the biggest increase since 2000 at their meeting last week.
Central bankers are hoping that their policies will temper economic growth without actually pushing unemployment up or plunging America into a recession.