Though stronger than expected, the rate of inflation in April slowed for the first time in eight months, but experts still aren’t sure how long it will take for prices to return to normal levels—even if the worst has finally passed.
Overall prices rose 0.3% from March—higher than the 0.2% economists were expecting but much lower than the previous month’s increase of 1.2%, according to data released by the Labor Department on Wednesday.
On a yearly basis, prices jumped 8.3% last month, falling from 8.5% in March but exceeding expectations calling for an increase of 8.1%; the slowdown marked the first month-over-month decline since August.
The overall increase was the result of broad upticks across shelter, food, airline fares and new vehicle prices, while a month-over-month decline of 6.1% in long-surging gasoline prices (which spiked 18% in March) helped offset the gains, the government said.
Core inflation, which excludes volatile food and energy prices, rose 0.6% in April after a 0.3% uptick in March—a “seriously disappointing” jump given expectations for a 0.4% increase, Pantheon Macroeconomics chief economist Ian Shepherdson said in an email Wednesday, pointing out a 1.1% increase in new vehicle prices was “significantly bigger” than in recent months.
In a weekend note to clients, Goldman Sachs economist Ronnie Walker cautioned the inflation outlook remains “highly uncertain” due to lingering supply chains, red-hot wage growth and still-surging commodity prices—with gas prices, for example, jumping to record highs on Tuesday.
The economist expects shelter inflation will remain firm amid the tightest housing market in decades, while price spikes driven by supply chain constraints will “fall sharply” as bottlenecks ease, particularly in used cars and consumer electronics, which saw prices continue to fall in April.
“The slight moderation in inflation will likely provide some needed boost in consumer confidence,” Jeffrey Roach, chief economist for LPL Financial, said in emailed comments Wednesday. “Investors and policy makers both know inflation will likely stay above target for a while but both will focus on the direction of the change.”Stocks fell immediate after the Wednesday CPI report, with S&P 500 futures falling 1.1% by 9:05 a.m. ET, while Nasdaq futures plunged 1.8%.
The reopening economy and fiscal stimulus helped fuel one of the strongest starts to a bull market ever during the pandemic, but stocks have struggled this year as the Fed raises rates and unwinds economic support to ease inflation.
After rising 27% in 2021, the S&P has fallen 17% this year, while the Nasdaq has flirted with bear-market territory, plummeting as much as 26%. “A repricing of stocks is currently taking place due to rising interest rates, which mathematically makes stocks less attractive,” explains David Bahnsen, chief investment officer of $3.6 billion advisory The Bahnsen Group.
I’m a senior reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at
Source: The Worst Of The Stock Market Crash May Be Yet To Come, According To Wall Street’s ‘Fear Gauge’ Signal
Has Inflation Peaked? Fed’s Favorite Indicator Says Maybe So—Despite Another ‘Startling’ Reading
Gas Prices Jump To Record Highs
LIC IPO: Grey market premium tumbles 90% in just one week
Rupee closes at record low as Fed rate hike boosts dollar; equities crumble
Why the rupee is likely to depreciate even more in coming days
LIC IPO: Why FIIs aren’t impressed with India’s Aramco moment
Best NPS funds: Find out which pension fund manager has given the best returns
Russian crude aid Reliance Industries’ O2C margins
Ola’s top engineering honcho Dinesh Radhakrishnan quits
Remote work contents:
https://quintexcapital.com/?ref=arminham Quintex Capital
https://www.genesis-mining.com/a/2535466 Genesis Mining
https://jvz8.com/c/202927/369164 prime stocks
https://jvz3.com/c/202927/361015 content gorilla
https://jvz8.com/c/202927/366443 stock rush
https://jvz4.com/c/202927/296191 gluten free
https://jvz1.com/c/202927/286851 diet fitness diabetes
https://jvz8.com/c/202927/213027 writing job
https://jvz4.com/c/202927/358049 profile mate
https://jvz8.com/c/202927/376524 super backdrop
https://jvz2.com/c/202927/184902 gaming jobs
https://jvz6.com/c/202927/88118 backlink indexer https://jvz1.com/c/202927/376361 powrsuite
https://jvz4.com/c/202927/343405 PR Rage
https://jvz6.com/c/202927/371547 design beast
https://jvz3.com/c/202927/376879 commission smasher
https://jvz2.com/c/202927/376925 MT4Code System
https://jvz6.com/c/202927/375959 viral dash
https://jvz1.com/c/202927/376877 forex expert
https://jvz8.com/c/202927/376381 ada leadz
https://jvz6.com/c/202927/374934 marketingblocks https://jvz3.com/c/202927/372682 clipsreel
https://jvz2.com/c/202927/337292 DFY Suite 3.0 Agency+ information
https://jvz8.com/c/202927/291061 VideoRobot Enterprise
https://jvz8.com/c/202927/327447 Klippyo Kreators
https://jvz8.com/c/202927/324615 ChatterPal Commercial
https://jvz8.com/c/202927/299907 WP GDPR Fix Elite Unltd Sites
https://jvz3.com/c/202927/342585 VidSnatcher Commercial
https://jvz3.com/c/202927/320972 Storymate Luxury Edition
https://jvz2.com/c/202927/320466 iTraffic X – Platinum Edition
https://jvz2.com/c/202927/330783 Content Gorilla One-time
https://jvz2.com/c/202927/301402 Push Button Traffic 3.0 – Brand New
https://jvz2.com/c/202927/321987 SociCake Commercial https://jvz2.com/c/202927/289944 The Internet Marketing
https://jvz2.com/c/202927/297271 Designa Suite License
https://jvz2.com/c/202927/310335 XFUNNELS FE Commercial
https://jvz2.com/c/202927/343635 MediaCloudPro 2.0 – Agency
https://jvz2.com/c/202927/353558 MyTrafficJacker 2.0 Pro+
https://jvz2.com/c/202927/365061 AIWA Commercial
https://jvz2.com/c/202927/357201 Toon Video Maker Premium
https://jvz2.com/c/202927/351754 Steven Alvey’s Signature Series
https://jvz2.com/c/202927/344541 Fade To Black
https://jvz2.com/c/202927/290487 Adsense Machine
https://jvz2.com/c/202927/315596 Diddly Pay’s DLCM DFY Club
https://jvz2.com/c/202927/355249 CourseReel Professional
https://jvz2.com/c/202927/309649 SociJam System
https://jvz2.com/c/202927/263380 360Apps Certification
https://jvz2.com/c/202927/377557 Instant Website Bundle
https://jvz2.com/c/202927/377194 GMB Magic Content
https://jvz2.com/c/202927/376962 PlayerNeos VR