US CPI below 2.0% first time since Oct 2015 - ANZ

Analysts at ANZ explained that following the unexpected monthly drop in March headline and core inflation, CPI figures rebounded in April, although the y/y rates came in 0.1%pts below expectations, at 2.2% y/y and 1.9% respectively.

"Core inflation dropped below 2.0% for the first time since October 2015. With oil prices stabilising, headline rates of inflation have peaked and more moderate data is expected in the coming months, although the April PPI data and labour market figures suggest that pipeline inflation pressures are building. So it’s still a story where the Fed will continue with the job at hand but in a gradualist manner."