In April, the Fed's inflation gauge slowed even further, putting a hole in Consumer pricing deals

In April, the Fed's inflation gauge slowed even further, putting a hole in Consumer pricing deals ...

Updated at 9:14 AM EST

The Federal Reserve''s preferred measure of inflation in the United States fell further from two major year-over-year highs last month, according to reports on Friday, indicating that consumer price concerns have risen in the world''s largest economy.

The core PCE price index increased by 4.4 percent from last year, easing from the highest levels since 1983, and 0.3 percent the month, according to the Bureau of Economic Analysis, a figure that was consistent with Wall Street expectations and continues to indicate signs of easing consumer price pressures. The March increase estimate was confirmed at 0.3 percent.

The headline PCE index increased only 0.2% on the month and 6.3 percent on the year, down from the highest levels since 1980. Personal income climbed by a slower-than-expected pace of 0.3%, according to the BEA, just ahead of the Street consensus forecast of a 0.7 percent rise.

The Bureau of Labor Statistics claims that its headline consumer price index for the month of April increased by 8.5 percent from last year, down from the 8.5% increase in March, the highest rate since December of 1981. On a monthly basis, inflation increased by 0.3 percent, compared to the March increase of 1.2 percent.

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"We anticipate a further slowing in the second half, but the pressure on inflation is high, according to Ian Shepherdson of Pantheon Macroeconomics. "We expect a decrease in retail and wholesale margins, as the result of the decrease."

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Stocks on Wall Street futures have extended their gains following the data release, with futures tied to the Dow Jones Industrial Average indicating a 115-point opening bell drop, and investors linked to the S&P 500, which has fallen by 14.8% for the year, are priced for a 29-point rise to the upside.

10-year Treasury bond rates in the United States increased to 2.74%, compared to a one-month low of 101.77.

The FedWatch tool from the CME Group is showing a 97.6% chance of a 50 basis point rate increase in June, as well as a 93.3% chance of a 50 basis points follow-up in July.

The GDPNow forecasting tool developed by the Atlanta Federal Reserve, a real-time benchmark, suggests economic growth in the United States is increasing at a 1.8% rate, while the Commerce Department''s second projection of growth demonstrated a decrease of 1.5 percent, the first in two years.

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