The run-up in food prices is slowing down, but a new report is expected to show inflation remains higher than the goal the Federal Reserve says would signal price surges are under control.
Data released today by the Department of Labor is projected to show consumer prices rose 5% in April as compared to a year earlier, the same rate as in March, according to the average forecast of economists surveyed by FactSet.
On a monthly basis, prices are expected to have inched up 0.4%, a slight bump above the 0.1% uptick in March that was the slimmest in two years. Meanwhile, core CPI - seen as a better guide to long-term trends because it doesn’t count the volatile prices of food and energy - is projected to increase 0.3% over the previous month. For the year, it’s projected to be up 5.4%, down from 5.6% in March.
What time does the CPI report release?
The Consumer Price Index will be released at 8:30 AM ET.
Key inflation report
The Personal Consumption Expenditure price index, the Federal Reserve’s preferred measure of inflation, comes out on May 26.
The next consumer price index report is scheduled to be released on June 13.
What is a good inflation rate?
The Federal Reserve’s target is an inflation rate of 2%. It has said that the 2% goal "is most consistent with the Federal Reserve’s mandate for maximum employment and price stability."
S&P Futures
Stocks fell in pre-market trading Wednesday morning, ahead of the 8:30 inflation report. Dow futures declined 0.16%; S&P 500 futures eased 0.16% and Nasdaq futures edged down 0.17%
Inflation rate
In March, the inflation rate was 5% on an annual basis. The pace of price increases slowed for the ninth month in a row as prices at the pump and the grocery store declined.
What is the difference between core consumer price and overall consumer price index?
While the Consumer Price Index measures how average prices shift over time for various goods and services, the core consumer price leaves out the costs of energy and food which are particularly volatile.
CPI meaning
The Consumer Price Index (CPI) is a snapshot of how prices shift on average over time for a variety of products and services.
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