US inflation slows moderately from March levels, but headline price gains still running above 8% annually.
CPI inflation across the US rose 0.3% m/m in April and 8.3% y/y, moderating from 8.5% last month but rising at a faster pace than the 8.1% analysts expected. Core CPI jumped 0.6% m/m and 6.2% y/y, a slowing from 6.5% last month.
Sustained high inflation will likely keep the Federal Reserve on its 50bp rate hike clip for the next few meetings and could see officials debating an even larger 75bp hike later in the year. (See: MNI INTERVIEW: Fed's Barkin Says Hikes Not On Set 50BP Course).
Owners' equivalent rent rose 0.5%, a significant jump for the slow-to-change shelter category. Energy rose 30.3% y/y and food increased 9.4%, the largest y/y increase since 1981, the BLS said.