Economy

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US Consumer price inflation (CPI) for April came in hot at +4.2% y/y vs +3.6% expected up from +2.6%. Core, Ex food and energy +3.0% y/y vs +2.3% expected and prior ex food and energy +1.6%. Month on month CPI rose +0.8% m/m vs +0.2% expected with [rior m/m reading was +0.6% (highest since 2016). Real wages were much lower, Real avg hourly earnings -3.7% vs +1.5% y/y prior.

Inflation

Highlights

US CPI April 2021

  • Y/Y 4.2% (exp. 3.6%, prev. 2.6%),
  • M/M 0.8% (exp. 0.2%)

United States Inflation Rate

 

  • Core Y/Y 3.0% (exp. 2.3%, prev. 1.6%),
  • Core M/M 0.9% (exp. 0.3%)  

United States Core Consumer Prices

  • Highest reading since September of 2008
  • Gasoline (49.6 percent), fuel oil (37.3 percent) and used cars and trucks (21 percent) recording the biggest increases.

The effects of the coronavirus pandemic are weighing on prices since in last year many businesses closed and lockdowns were imposed, denting economic activity.  A jump in commodities and material costs, coupled with supply constraints, are pushing producer prices up and some companies are passing those costs to clients

US Real Earnings April 2021

  • Real avg hourly earnings -3.7% vs +1.5% y/y prior
  • Real avg weekly earnings -1.4% vs +3.9% y/y prior

 

Yesterday OPEC issued it's Monthly Oil Market Report for June of note was it's report on the inflationary move of oil prices against currencies. 

Tomorrow May PPI is due and the next major U.S. economic number to concern markets

From the Traders Community News Desk

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