US CPI Reflects Softening Inflation Pressures In April

According to the Labor Department's consumer price report, US price pressures eased slightly during April as headline CPI only rose 0.2 percent against expectations of a 0.3 percent gain, while the core measure (which excludes food and energy) edged up 0.1 percent versus forecasts of a 0.2 percent increase. Indeed, a breakdown of the index shows that the transportation component fell 0.7 percent, which is somewhat perplexing as this includes a 2 percent drop in gasoline prices, despite the fact that average US gas prices grew steadily during the month to break above $3.50/gallon. Most other factors showed at least mild gains, with the biggest single increase registered in food prices. Overall, it is clear that there are still upside price risks for the US economy, but given the weaker-than-expected figures, the US dollar has pulled back as the markets weigh the odds of a June rate cut by the Federal Reserve.

DailyFX

Disclaimer

Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.