Today, the Bureau of Labor Statistics released the US CPI data for April. The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in April on a seasonally adjusted basis, after increasing 0.1 percent in March, the U.S. Bureau of Labor Statistics reported today. The Consumer Price Index for All Urban Consumers (CPI-U) increased 4.9 percent over the last 12 months to an index level of 303.363 (1982-84=100). For the month, the index increased 0.5 percent prior to seasonal adjustment.
The index for all items less food and energy rose 0.4 percent in April, as it did in March. The all items index increased 4.9 percent for the 12 months ending April; this was the smallest 12-month increase since the period ending April 2021. The all items less food and energy index rose 5.5 percent over the last 12 months.
US stock futures rose on Wednesday, after the CPI report continued to point to a slowdown in inflation. However, the stickiness potentially means that the Federal Reserve keeps interest rates elevated for a while.
Importantly, US core consumer prices, which exclude volatile items such as food and energy, rose by 0.4 percent from a month earlier in April of 2023, unchanged from the previous month and in line with market expectations.
Going forward, all eyes will be on the FOMC meeting to be held on June 13-14. The US Fed is expected to pause rate hike after increasing rates by 25bps in May. A rate cut possibility could arise by end 2023, however, Fed chief Powell has already hinted at early 2024 for any rate cut scenario.
The Consumer Price Index for May 2023 is scheduled to be released on Tuesday, June 13, 2023, at 8:30 a.m. (ET).
The Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services. The CPI reflects spending patterns for each of two population groups: all urban consumers and urban wage earners and clerical workers. The all urban consumer group represents over 90 percent of the total U.S. population.