US: Core CPI was a touch disappointing on auto weakness – Standard Chartered
|US April CPI inflation printed moderately below market expectations, with core CPI rising 2.1% y/y and 0.98% m/m, points out Sonia Meskin, Research Analyst at Standard Chartered.
Key Quotes
“On balance, this was a benign print that points to ongoing firmness in US core inflation but few signs of significant acceleration in the months ahead. On the bright side, shelter prices remained strong, a positive sign for business investment as residential structures constitute the largest portion of US capital stock. Furthermore, medical service prices continued to accelerate. Medical services constitute a far larger part of the PCE index than of CPI, so ongoing price increases here bode well for the PCE trajectory, all else equal.”
“Among the weakest categories in April was airfare prices, which declined almost 3% m/m, and prices for used cars and trucks, down 1.6% m/m.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.