US April CPI +2.5% vs +2.5% y/y expected

Author: Adam Button | Category: News

Highlights of the April consumer price index report

  • Prior was 2.4%
  • Ex food and energy +2.1% y/y vs +2.2% y/y expected
  • Prior ex food and energy was +2.1% y/y

Month-over-month data:

  • m/m CPI 0.2% vs 0.3% expected (+0.221% unrounded)
  • Prior m/m was -0.1%
  • Ex food and energy +0.1% vs +0.2% expected (+0.98% unrounded)
  • Prior ex food and energy +0.2% m/m

Earnings:

  • Real average weekly earnings +0.4% vs +0.9% y/y prior
  • Real average hourly earnings +0.2% vs +0.4% y/y prior (revised to +0.3%)

Another month, another disappointing reading on inflation. Looking through the details, there aren't any big quirks that stand out. Energy prices were up 14% after a 2.8% drop in March. Apparel climbed 0.3% after a 0.6% drop a month ago. Vehicle prices are in a bit of a deflationary trend with new vehicles down 0.5% m/m and 1.6% y/y while used vehicles are down 1.6% m/m and 0.9% y/y

The headline is over target but the numbers are decelerating. The three-month annualized core CPI reading is below 2%.

The US dollar is slumping across the board.

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