US consumer price index for April
- US CPI YoY 2.0% vs 2.1% estimate. Prior month 1.9%
- US CPI MoM 0.3% versus 0.4% estimate. Prior month 0.4%
- US CPI ex food and energy YoY 2.1% versus 2.1% estimate. Prior month 2.0%
- US CPI ex-food and energy MoM 0.1% versus 0.2% expected. Prior month 0.1%
- Real average hourly earnings YoY: 1.2% versus 1.3% last month
- Real average weekly earnings YoY 0.9% versus 1.4% (revised last month).
The CPI data is a bit on the light side. The headline numbers were lower by 0.1%. The Core YoY was expected but the MoM was lower. Real earnings are contained.
The Fed talking point has been that inflation is transitory but the Fed would be tolerant of higher inflation. New tariffs if they remain, will be paid by consumers in the form of higher costs for imported goods unless the overseas manufacturers build in the US or US companies can build at more competitive prices.
