Inflation in the US edged down to 4.9 percent in April, its lowest level in more than two years.

The labor department released its monthly Consumer Price Index figures on Wednesday.

In June 2022, the CPI peaked at above 9 percent. However, it has slowed every month since.

The invasion of Ukraine put pressure on energy prices, but the cost of gas in April fell 12.2 percent compared to year before. The price of used cars and trucks dropped 6.6 percent.

Before the pandemic, policymakers at the US Federal Reserve were used to seeing annual gains in inflation closer to their goal of 2 percent. They responded to the surge in prices by raising interest rates at the fastest pace since the 1980s.

Earlier this month, they hinted that they may pause their rate hikes.