US consumer prices edge lower in April, as expected

The cost of living in the US increased slightly more quickly than expected in April in comparison to the month before but dipped versus the same period one year ago, as expected.

The consumer price index advanced at a 0.4% month-on-month pace in April, following a rise of 0.1% in March, according to the Bureau of Labor Statistics.

Economists had anticipated a reading of 0.3%.

In comparison to a year ago, the rate of increase in CPI accelerated from 0.9% in March to 1.1% in April, just as expected by economists.

At the core level, excluding prices for energy and food, CPI moved up by 0.2% over the month (consensus: 0.2%) and 2.1% year-on-year, which was also in-line with forecasts in the market.

That was less than an advance in core prices of 2.2% year-on-year in March.

In an initial reaction, as of 13:44 BST the yields on the two and ten year benchmark US Treasury notes were higher by two basis points each to 0.81% and 1.77%, respectively.