In the recent report by the Bureau of Labor Statistics, the US inflation for April 2011 inclined by 0.4% or in annual terms by 3.2%.
The report showed, as expected, a rise in major commodities prices in particular the energy prices index rose by 2.2% during April, which is in annual terms (y-2-y) 19%.
In the previous month the March 2011 CPI inclined by 0.5 percent points.
Since most of the rising inflation is attributed to the soaring gasoline prices, which, in tern, are affected by exogenous factors related to the rising crude oil prices (e.g. the turmoil in the Middle East); it’s likely that this report won’t affect the Fed’s decision in raising its basic interest rate.
The news on the CPI don’t seem (currently) to stir up the financial markets as there are currently no major fluctuations in the currencies markets including the EURO/USD or commodities markets.
For further reading:
- Weekly outlook for May 9-13
- Oil prices fell sharply last week – Weekly recap 2-6 May
- US inflation rises due to energy price hike – 18 January