5/15/2024: April CPI was 0.3% MoM

Headline CPI 3.4% YoY; Core CPI 3.6% YoY

April CPI report was out this morning. Headline CPI MoM rose 0.3% in April vs. 0.4% in March while the core CPI MoM rose 0.3% in April vs. 0.4% in March Headline CPI YoY rose 3.4% in April vs. 3.5% in March, 3.2% in February, 3.1% in January, 3.4% in December, 3.1% in November, 3.2% in October, 3.7% in September, 3.7% in August, 3.2% in July, 3% in June, 4.0% in May, 4.9% in April 2023 and 5% in March 2023. Core CPI YoY rose 3.6% in April vs. 3.8% in March, 3.8% in February, 3.9% in January, 3.9% in December, 4% in November, 4% in October, 4.1% in September, 4.2% in August, 4.7% in July, 4.8% in June, 5.3% in May, 5.5% in April 2023 and 5.6% in March 2023.

Core CPI MoM is finally down to 0.3% after being stuck at 0.4% for 3 months !! Service inflation YoY is still stubbornly high at 5.3% in April vs. 5.4% in March, 5.2% in February and 5.4% in January. Transportation CPI YoY is also inching higher and up 11.2% in April vs. 10.7% in March, 9.9% in February and 9.5% in January!! This inflation fight is not easy and I wonder if core CPI YoY will get below 3% by the end of the year assuming there are no rate cuts.