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WIG20 Index Surges Back Above 200DMA Resistance


NY Fed Operational Purchases


BLOCK, 5s/Eris Swaps

--Core CPI +0.1% Vs +0.2% Expected, Owners Equivalent Rent +0.3%
--Apparel Prices -0.8% After -1.9% In March
By Kevin Kastner and Harrison Clarke
     WASHINGTON (MNI) - The April CPI data were below expectations, 
allowing year/year inflation to tick up only slightly.
     Overall CPI rose by 0.3%, compared with the 0.4% gain expected in 
both the Bloomberg and MNI surveys, while core prices were up 0.1%, 
just below the 0.2% gain expected. 
     Here are some of the key takeaways from the data released 
     - One factor in the softer than expected core reading was a 0.8% 
decline in apparel prices after a 70-year low in March. The core CPI 
reading rose 0.138% unrounded, so it was closer to 0.1% than the 0.2% 
gain expected. 
     - As a result of the 0.3% rise in overall CPI, the year/year rate 
moved up to +2.0% from +1.9% in March. Excluding only energy, the 
year/year rate held steady at +2.0% and the year/year rate for core 
prices rose to +2.1% from +2.0% in March, so the core measures are very 
close to target. 
     - The major core components showed generally positive readings. The 
large owners' equivalent rents category rose 0.3% and medical care was 
up 0.3%. However, new vehicle prices rose 0.1%, and used vehicle prices 
were down 1.3%. 
     - Energy prices rose by 2.9% in April after a 3.5% gain in March, 
with gasoline prices up 5.7%. Electricity prices were flat and gas 
utilities prices fell 0.8%. CPI excluding only energy was up 0.1%, 
while food prices were down 0.1% on foods at home. 
     - MNI analysis showed analysts tend to slightly overestimate April 
core CPI, so today's data were in line with that trend. 
     ** MNI Washington Bureau: 202-371-2121 **