US economic growth slows but inflation grows

The US economy grew by less than forecast in the first three months of this year, but inflation gathered pace, which could delay an interest rate cut.

Official figures revealed the economy expanded at an annualised rate of 1.6 per cent, far below expectations and the growth seen in the final months of 2023.

Meanwhile, figures from the US Department of Commerce today showed that inflation increased by 3.4 per cent in the first three months of 2024.

This is compared to an increase of 1.8 per cent in the final three months of 2023.