Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CPI inflation across the US came in slightly below Wall Street's expectations by rising 0.1% m/m in March and 5.0% y/y, moderating from 5.9% last month, but core CPI met expectations rising 0.4% m/m and 5.6% y/y, an increase from 5.5% last month.
Headline inflation in the U.S. is now the lowest since May 2021. Inflation that is still above the fed funds range of 4.75% to 5% and is still over two times the Federal Reserve's target that will likely keep the Fed on its 25bp rate hike clip. (See: MNI INTERVIEW: Fed Not Done Hiking Despite Bank Pain-Cecchetti)
The market expectations for another 25bp Fed hike slipped a tad after the CPI, with FOMC-dated showing 17bps priced for the May 3 FOMC from closer to 19bps prior. The market priced in 54bp of cuts from current levels to 4.29% to year-end.
Shelter prices took a step down from January's and February's 0.7% pace to 0.5% in March. Owners' equivalent rent rose 0.5%, a step down from prior months, as rent of primary residence also slowed to 0.5%. Used cars and trucks prices slowed on the month (-0.9%) and new vehicles prices increased (0.4%), heating up from the prior month's 0.2% increase. Core services ex-housing rose 0.25% in March, stepping down from the prior month's pace.
Source: BLS
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.