The U.S. annual inflation rate slowed to 4.9 percent in April, down from five percent in March. Economists had expected anything between 4.9 percent and 5.2 percent.
The monthly consumer price index (CPI) rose 0.4%, unchanged from the previous month.
The core inflation rate, which eliminates the volatile food and energy sectors, slowed to 5.5 percent year-over-year and rose 0.4 percent month-over-month.
But here is the deal: prices are still 4.9 percent higher than they were a year ago.
What’s more, with inflation, prices never return to what they were before the spike.
So, for example, if you visit a coffee shop and now pay $2 when you used to pay $1.75, it will never return to that level. Plus, the depreciation of the U.S. dollar means you need more units of currency to pay for the same amount of good and services.
The CPI, which is generally a lot higher than what the government reports, shows the upward trend of the cost of goods and services:
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