US inflation: peak or plateau, the debate continues to rage

In April, the annual inflation rate fell for the first time since the post-pandemic recovery began. The decline is modest (two tenths), so inflation remains far too high (>8%) to ease consumer anxiety. Non-energy goods prices have begun to disinflate but some services prices continue to accelerate. The result is a mixed bag. The Fed is unlikely to deviate from its restrictive line until it has confirmation that demand is moderating. On the supply side, tensions remain high and ar...