The consumer price index rose 4.9% year-on-year in April, according to the latest report from the US Department of Labor. While this is high by standards for the past few decades, it is the lowest since June 2021 and is well below the recent peak of 9.1% in June 2022.
Lower inflation may be bad news for mortgage holders and other debtors who have enjoyed the rapid fall in the real value of their debt, but it’s good news for most others, especially workers, who often lose purchasing power as wage increases lag behind left behind by inflation. Union workers, who are typically paid under multi-year collective agreements, have been hardest hit by the rise in inflation in 2022.
Unemployment remains at historic lows
Meanwhile, official unemployment has stood at 3.4% since January, the lowest level since May 1969, according to the May 5 report.
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