April Inflation Expected to Fall Short of Market Forecasts

Market analysts predict a 2.4% year-on-year increase in the Consumer Price Index (CPI) for April, mirroring March’s figures. While overall inflation is expected to slow down, only food prices are rising, accounting for approximately 13.7% of the total CPI. This suggests that April’s inflation may be lower than anticipated, potentially paving the way for the Federal Reserve to resume its interest rate cut cycle in June. Consequently, investors anticipate a positive impact on the U.S. stock market following the data release, while the dollar index and U.S. Treasury yields are expected to experience a decline.