Economist were expecting LESS inflation as measured by CPI. And the numbers came out just about as expected, no surprises. Let’s call that a good thing.
CPI Ex Food & Energy MoM
CPI Ex Food & Energy YoY
CPI Core Index
Okay, CPI is the broadest of the Government’s price gauges because it includes goods and services. Almost 60 percent of the index covers prices consumers pay for services ranging from medical visits to airline fares, movie tickets and rents.
As defined by CPI, the cost of living in the U.S. increased at a slower pace in March as the run-up in energy prices eased. Lending SOME credence supporting the view of some Federal Reserve policy makers that inflation will ebb.
Here a little nugget in the full report. Three was a 1.3 percent jump in the cost of used cars and trucks, the biggest since December 2009, and it contributed to the increase in the core measure, as did increases in clothing and medical care.
Today’s report showed energy costs increased 0.9 percent down significantly after jumping 3.2 percent in February. Food costs increased 0.2 percent, reflecting broad-based gains.
Lull before the storm? The cost of a gallon of regular gasoline at the pump eased to $3.91 on April 11 from a 10-month high of $3.94 reached a week earlier, according to from AAA, the biggest U.S. auto group.
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury