US consumer prices edge lower in April, 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.