Consumer price index climbs 0.2% in April

Posted May 11, 2018

The Labor Department's Consumer Price Index rose 0.2 percent in April after falling 0.1 percent in March.

The Labor Division stated Thursday that the patron worth index elevated 2.5 % in April from a yr earlier, the largest annual acquire in 14 months. Hotel and motel rates, which had posted an outsize gain in March, rose 0.8% in April. The index rose 2.1% for the 12 months ending in April.

The British pound fell 0.2 percent to $1.3523.

Owners' equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home, rose 0.3 per cent last month after a similar gain in March.

The pan-European FTSEurofirst 300 index of leading regional shares fell 0.25 percent, but shares in London, Germany and France were higher.

In April, the price of services ticked up 0.1 per cent. But those gains were partially offset by declines in electricity (down 0.6%), used cars and trucks (down 1.6%) and new vehicles (down 0.5%).

However, excluding the volatile food and energy components, "core" CPI rose just 0.1 percent and was 2.1 percent higher than the same month of past year.

Slower progress in core costs may make it much less doubtless that the Federal Reserve will speed up its rates of interest will increase.

What this means for TIPS and I Bonds. The New Zealand dollar slid after the central bank left the door open to an interest rate cut as inflation remains contained.

Economists had forecast the CPI rebounding 0.3% in April and the core CPI climbing 0.2%. Here are the new June inflation indexes for all TIPS. Average weekly earnings, also taking into account inflation, fell 0.1% last month.

What this means for future interest rates.

The soft read on inflation should give the Fed comfort that their gradual approach to raising rates is the correct one and ease market concerns, he said. In its statement the central bank said that it sees inflation running near its "symmetric 2 percent objective over the medium term".

Last month, gasoline prices rebounded 3.0 per cent after tumbling 4.9 per cent in March.

Price pressures could soon get a boost from a tightening labour market. I have no business relationship with any company whose stock is mentioned in this article. If inflation continues rising - which looks probable - the Fed will likely add a third increase this year. I am not receiving compensation for it (other than from Seeking Alpha).