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MNI DATA BRIEF: US April Y/Y CPI Seen Fastest Since 2011

MNI (Washington)
WASHINGTON (MNI)

U.S. April CPI figures due Wednesday should show year-over-year headline inflation advanced at the fastest pace in a decade, boosted by the comparison to the early Covid-19 shutdown, a jump Fed policy makers insist will be temporary.

From a year earlier, CPI in April should increase 3.6% compared with 2.6% in March according to a Bloomberg consensus. Year-over-year core inflation is expected to jump 2.3% from 1.6% in March, the fastest since February.

Month-over-month inflation should rise 0.2% after a 0.6% gain in March. That reflects base effects, supply disruptions and strong demand. Some analysts say wage pressures driven by a worker shortage should also add temporary pressure to inflation. Excluding food and energy, core CPI should increase 0.3% in April, according to Bloomberg.

MNI Washington Bureau | +1 202-371-2121 | brooke.migdon@marketnews.com

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