Light at the end of the tunnel? Inflation in the US is slowing down

The US flag in between skyscrapers

The United States may have seen a light at the end of the price increase tunnel. Their annual inflation rate in April was 0.2 percentage points lower than March inflation. But stock markets are not satisfied with the rate of disinflation.

The annual inflation rate in the US reached 8.3 percent in April. Prices here rose by 8.5 percent in March. Thus, US inflation fell by 0.2 percentage points in April. Experts are now examining whether the inflation rate has really peaked or whether it is just a short-term downward swing and the next wave of accelerating price increases is yet to come.

Dissatisfaction of investors rising

However, investors in the stock markets are not satisfied with the pace at which disinflation is occurring in the US. The main index of the New York Stock Exchange, the S&P 500, lost 1.65 percent in Wednesday’s trading. The Dow Jones Industrial Average wrote off slightly above a percent, with the worst performer being the tech-heavy Nasdaq, which lost more than three percent.

Inflation peak probably already occurred

However, inflation is likely to ease in the coming months. If only because sooner or later the effect of last year’s high base of comparison will begin to manifest itself. Unless some other contingencies occur, inflation in the US may be past its peak.

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