While consumer inflation stabilizes, the leading indicator of wholesale inflation continues to skyrocket.
For the first time all year, consumer price index inflation came in line with investor expectations, rising by 0.3% in April but slightly moderating from 3.5% to 3.4% as measured for the last 12 months. Core CPI, which excludes the volatile categories of, also rose by 0.3% to moderate from 3.8% to 3.6%. Crucially, core CPI on a three-month annualized basis, which more precisely measures the recent trajectory of the price instability borne by consumers, slipped from 4.5% to 4.1% last month.
Both headline and core wholesale inflation, which is a leading indicator of price instability because prices borne by producers are passed to consumers in due time, rose by 0.5% in April alone. On an annualized basis, headline producer price index inflation has more than doubled to the start of this year from 0.9% to 2.2%, while core PPI has risen from 2% to 2.4%.
Undergirding all of this is the Fed’s unyielding commitment to return inflation to its maximum 2% target and Chairman‘s specific terror of repeating the inflation rebounds of the myopic doves who lead the central bank before Paul Volcker had to jack up interest rates 45 years ago into the double digits to save the U.S. dollar.
Consumer inflation is indeed stabilizing in speed, but it remains around twice the Fed’s maximum inflation target. Meanwhile, producer inflation is nominally around the Fed’s target but is moving fast in a dangerous direction. At a minimum, April’s CPI report should prevent panic, but the inflation war isn’t just far from over — there’s still barely any evidence that it’s headed back in the right direction.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Japan Inflation: Tokyo Consumer Price Index rises 1.8% YoY in April vs. 2.6% expectedThe headline Tokyo Consumer Price Index (CPI) for April rose 1.8% YoY, compared to a 2.6% rise in the previous reading, the Statistics Bureau of Japan showed on Friday.
Read more »
This Week: Consumer confidence, Fed policy statement, April jobs reportThe Conference Board releases its monthly index of U.S. consumer confidence Tuesday. The Federal Reserve delivers its latest interest rate policy update Wednesday following a two-day meeting of its policymakers. The Labor Department issues its April tally of hiring by nonfarm employers Friday.
Read more »
Consumer Price Index data for April set to test recent inflation uptickThe high-impact US Consumer Price Index (CPI) inflation data for April will be published by the Bureau of Labor Statistics (BLS) on Wednesday at 12:30 GMT.
Read more »
US consumer prices rise less than expected in April; core CPI slowsUS consumer prices rise less than expected in April; core CPI slows
Read more »
Inflation eases in April with consumer prices rising 3.4% from a year agoThe consumer price index was expected to increase 3.4% from a year ago, according to the Dow Jones consensus estimate.
Read more »
Consumer price growth slowed marginally in April; CPI rose an annualized 3.4%Consumer price growth slowed marginally in April; CPI rose an annualized 3.4%
Read more »