Inflationary pressures are fading, just as Federal Reserve officials expected. But don’t think that the decline in the inflation rate will automatically lead to further quantitative easing by the Fed.
The consumer price index was flat in April, the Bureau of Labor Statistics reported Tuesday. And the CPI is expected to drop by at least 0.2% in May on account of the big drop in gasoline prices.
The CPI has increased 2.3% compared with a year ago, down from a 2.7% year-over-year rate in March and 3.9% last September. By May, the year-over-year rate could slow to 1.8%, below the Fed’s longer run target.
Looking into the details, there isn't much of a pattern, but it looks like most "stuff" we consume (clothes, food, medicine) increased in price at a faster pace than the headline figure, with the exception of alcohol (hence, I'm not complaining).