Inflation Is Dropping - Latest CPI Numbers

President Biden has faced intense criticism from Republicans over the past two years as inflation began to take hold in the American economy. However, according to the latest monthly Consumer Price Index (CPI) numbers, the inflationary pressure appears to be subsiding, offering some relief to the President.

In March, the CPI was projected to rise by 0.2%, as reported by Dow Jones. However, the figures fell short of expectations, coming in at just 0.1%. Moreover, the Annualized Consumer Price Index in the US declined to 5%, which was considerably lower than what most economists had predicted.

Ryan Detrick, the chief market strategist at the Carson Group, observed that "It kind of feels like the calm before the storm. I mean, it's light volume, not a lot of big moves today. Traders are just kind of getting the eye on the prize, looking to that big CPI number."

While the Federal Reserve has been expected to raise rates by 0.25% next meeting, many economists believe that a lighter inflation number, like we had today, may push Jerome Powell and the Fed to pause rate hikes for the time being. This has caused US markets to rise in pre-market trading this morning.

Investors are also eagerly anticipating the release of the minutes from the Federal Reserve's March policy meeting, which is scheduled for Wednesday. The minutes are expected to provide further insight into the reasoning behind the central bank's 25 basis point hike following the collapse of Silicon Valley Bank and the resulting turbulence in the broader banking sector.