May 12, 2023
- The consumer price index rose 0.4% last month, pushed higher by rising shelter, used vehicle and gas prices. The increase was in line with Wall Street expectations.
- On an annual basis, the inflation rate was 4.9%, slightly less than the estimate and providing some hope that the trend is lower.
- For workers, real average hourly earnings, adjusted for inflation, rose 0.1% for the month but were still down 0.5% from a year ago.
A widely followed measure of inflation rose in April, though the pace of the increase provided some hope that the cost of living will head lower later this year.
The consumer price index, which measures the cost of a broad swath of goods and services, increased 0.4% for the month, in line with the Dow Jones estimate, according to a Labor Department report.
However, that equated to an annual increase of 4.9%, slightly less than the 5% estimate.
Excluding volatile food and energy categories, core CPI rose 0.4% monthly and 5.5% from a year ago, both in line with expectations.
Increases in shelter, gasoline and used vehicles pushed the index higher, and were offset somewhat by declines in prices for fuel oil, new vehicles and food at home.
Markets reacted positively to the news, with futures turning positive as Treasury yields were lower.
Source: CNBC
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