MNI BRIEF: US April Core CPI Matches Forecasts, Rising 0.3%
Retail sales data also came in weaker than expected, keeping a September rate cut on the table.
U.S. core CPI rose 0.292% in April, matching analyst expectations, while headline also came in at a 0.313% increase, a tenth below the Wall Street median, according to the Bureau of Labor Statistics report Wednesday. Headline CPI is up 3.4% from a year ago and core CPI slowed to 3.6% from 3.8%.
Treasury futures extended gains after retail sales data also came in weaker than expected. The data should help keep rate cuts on the table for this year after a surprisingly strong first quarter of inflation data.
The increase in core services prices excluding housing costs, or supercore CPI, fell to 0.42% from 0.7% the previous month, as expected and bringing the three-month average to 0.5%. Rent and owners' equivalent rent both rose 0.4% in the month, meeting expectations. Gasoline and shelter contributed over 70% of the monthly increase in headline CPI, the BLS said. (See: MNI INTERVIEW: Labor Cracks To Drive Fed Cuts-Staffing Group)