EmailEconomic
Last Update: 15-May-12 09:05 ET
CPI
Highlights
- Consumer prices were unchanged in April after increasing 0.3% in March. That was exactly what was expected by the Briefing.com consensus.
- Excluding food and energy, core prices increased 0.2% for the second consecutive month and met expectations.
Key Factors
- Energy prices fell 1.7% during the month, which was the largest decline since October 2011. The move was driven by a 2.6% drop in gasoline prices and a 1.1% decline in fuel oil.
- Food prices were up 0.2%, the same rate as March.
- Core price increases have been fairly consistent over the past few months. There was nothing in the report that suggests inflation will deviate from its current trend in the near future.
Big Picture
- Inflation has been trending higher, but the market's inflation expectations remain in check due to underlying concerns about a global economic slowdown. The Fed will draw some comfort in the fact it is winning the fight against deflation, but macro issues will keep the Fed married to its belief that economic conditions are likely to warrant an exceptionally low level of the federal funds rate through at least late-2014.
| Category | APR | MAR | FEB | JAN | DEC |
|---|---|---|---|---|---|
| All Items | 0.0% | 0.3% | 0.4% | 0.2% | 0.0% |
| Food and Beverages | 0.2% | 0.2% | 0.1% | 0.2% | 0.2% |
| Housing | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% |
| Equivalent Rent | 0.2% | 0.2% | 0.1% | 0.2% | 0.2% |
| Apparel | 0.4% | 0.5% | -0.9% | 0.9% | -0.1% |
| Transportation | -0.5% | 0.9% | 2.0% | 0.3% | -0.7% |
| Vehicles | 0.8% | 0.6% | 0.2% | -0.4% | -0.3% |
| Motor Fuel | -2.6% | 1.7% | 6.0% | 0.9% | -2.1% |
| Medical Care | 0.3% | 0.2% | 0.2% | 0.3% | 0.3% |
| Educ and Commun | 0.2% | 0.2% | 0.2% | 0.3% | 0.2% |
| Special Indices | |||||
| Core | 0.2% | 0.2% | 0.1% | 0.2% | 0.1% |
| Energy | -1.7% | 0.9% | 3.2% | 0.2% | -1.3% |
| Services | 0.2% | 0.2% | 0.1% | 0.2% | 0.2% |
