CPI drops to 4.9% YoY in April, just 0.1% off of expectations
Per CNBC
The consumer price index (CPI) has reached its lowest annual pace since April 2021, dropping to 4.9% year-over-year in April. This resulted in it being just 0.1% off compared to initial expectations.
A recent Labor Department report shared how the CPI increase was in line with estimates by the Dow Jones, raising by 0.4% for the month. The report notably showed some decreases in prices for certain consumer goods for April 2023.
Here are the items that saw a decrease.
- Food away from home: -0.2
- Fuel oil: -4.5
- Energy services: -1.7
- Electricity: -0.7
- Utility (piped) gas service: -4.9
- New vehicles: -0.2
- Transportation services: -0.2
- Medical care services: -0.1%
LPL Financials Chief Global Strategist Quincy Krosby gave a statement regarding how these reports suggested that the Fed's plans were working. However, it was still mentioned that the inflation print remained positive.
Krosby: “Today’s reports suggests that the Fed’s campaign to quell inflation is working, albeit more slowly than they would like... But for financial markets ... today’s inflation print is a net positive.”
The Labor Department is expected to release the producer price index soon with expectations that it would show a 0.3% headline increase along with a core gain of 0.2%.
In July, it was reported that the CPI reached its highest in 40 years at 9.1%. During this time, the prices of many consumer products increased, with fuel oil having the largest jump at 98.5%.
At that time, gasoline also saw a 59.9% increase, while electricity saw a 13.7% increase.
In October, it was reported that the Social Security Administration has decided to increase its benefits by 8.7% in 2023 amid the rising consumer prices. This was reportedly the highest benefit jump since 1981, which would result in additional benefits of $140 monthly.
See flow at unusualwhales.com/flow.
Other News:
- CPI hits 9.1%, highest in 40 years
- Social Security Administration to Increase Benefits by 8.7% in 2023 Amidst Rising Consumer Prices
Resources: