Reply To: Traders Market Weekly: Debt Ceilings and The Consumer


The Consumer Price Index (CPI) rose 0.4% month-over-month in April (consensus 0.4%) after a 0.1% increase in March.

Core-CPI, which excludes food and energy, rose 0.4% in April (consensus 0.3%) following a 0.4%
increase in March and up 5.5% year-over-year, versus up 5.6% in March.

The index for shelter (+0.4%) was the largest contributor to the increase in total CPI and core-CPI; however, the 0.4% increase was the smallest increase for the shelter index since January 2022.

The key takeaway from the report as far as the market is concerned is that the moderation in inflation, coupled with the moderation in the shelter index, should at least spur the Fed to entertain keeping its policy rate on hold when it meets again in June.