Latest US inflation report may provide clues to future path of prices and interest rates

The latest U.S. inflation report due on May 15, 2024, is anticipated to provide insights into the future trajectory of consumer prices and interest rates. Economists predict a slight decrease in year-over-year inflation for April, with core inflation possibly showing a decline, suggesting some easing of price pressures.

Federal Reserve Chair Jerome Powell emphasized the central bank's commitment to maintaining high interest rates to combat inflation, despite recent elevated price readings. The report's outcomes are crucial for gauging economic policy and will influence decisions on potential rate reductions later in the year.