Inflation in the US decreased last month, marking the first slowdown of 2024.

Inflation in the United States showed signs of cooling last month, with consumer prices rising by 0.3% from March to April, according to the Labor Department. This slight decrease from the previous month’s 0.4% rise may offer some relief to officials at the Federal Reserve and President Joe Biden’s reelection team.

The year-over-year inflation rate also ticked down from 3.5% to 3.4%, with underlying inflation reaching its lowest level in three years. The unexpected spike in inflation earlier this year had raised concerns about the economy and the impact on consumers.

While hiring remains strong and wage growth healthy, consumer prices are still above pre-pandemic levels. The latest report suggests that the pace of price increases may be slowing down, providing a glimmer of hope for the economy.

Fed Chair Jerome Powell had previously hinted at possible interest rate cuts in 2024 but now emphasizes the need for greater confidence in inflation falling to the 2% target before any rate adjustments are made.

Retail sales, on the other hand, remained unchanged, falling below economists’ expectations. Excluding gas and auto sales, retail sales actually decreased by 0.1%. This data, combined with the inflation figures, could influence the Fed’s decision on future rate cuts.

Overall, the latest economic data paints a mixed picture of the U.S. economy, with some indicators showing signs of improvement while others remain a cause for concern. The coming months will be crucial in determining the trajectory of inflation and its impact on the broader economy.