Post
Topic
Board Economics
Re: April CPI eased to 3.4 from 3.5 in March
by
pooya87
on 19/05/2024, 15:48:18 UTC
I agree with what you said, real inflation has not improved too much and is still high. But CPI in April was at 3.4% and lower than before. Looking at that, we cannot be said that inflation has not shown signs of decreasing, it has decreased but quite slowly.
Well I'd say "signs of decreasing" is what we saw in the second half of 2022 where inflation rate came down from 9.1% in June to 8.3% in July (0.8% decrease in 1 month) and continued going down consistently every month until it reached 3% a year later (6% decrease in a year). But it has been "sticky" ever since, going up and down from 3% to 3.7%.

0.1% decreased in one month is not like that in my opinion, specially as long as it stays above 3%. However if we see another reduction next month, and see inflation at something like 2.9% it could be a positive sign and we can hope for a possible interest rate cuts.