For its part, the core CPI was projected to rise 0.4% from a month earlier, while the leading indicator was projected to rise 0.2%, according to median estimates in a Bloomberg survey of economists.
While the latest report shows that US inflation has likely peaked, the figures underscore the breadth of price increases in the economy and, when combined with firm wage growth, suggest that the Inflation will remain high for quite some time.
Despite the Fed raising interest rates, including the biggest rate hike since 2000 last week, global headwinds like China lockdowns and resilient demand for services may mean a slow path to the 2 year target. % of the central bank.
Fed Chairman Jerome Powell signaled last week that officials are open to several half-point hikes in the central bank’s benchmark rate in the coming months. The CPI will help shape estimates for April’s personal consumption expenditures price index, the Fed’s preferred gauge of inflation, due for release on May 27.
A key expectation for a moderation in inflation this year hinges on slowing commodity prices as Americans shift discretionary income to activities such as travel and dining out. Goods inflation eased, while service costs rose to the highest since 2001 on a monthly basis.
“March inflation appears to have spiked in the world’s largest economy. April data, however, showed a slight narrowing in the spread. With caution and risk tolerance, we are constructive on some high-quality assets in these values, as well as we began to see with pleasure some yields of corporate bonds abroad”noted Inviu Research.
