Energy prices rebound after decline in March
Energy prices recorded an increase of 0.7% in April, which was after 2.4% fall in the earlier month. It was operated at a high cost for natural gas (+3.7%) and electricity (+0.8%), which offers a decline of 0.1%in gasoline on a seasonal adjusted basis. Despite the rebound, the energy is 3.7% less in a year, with gasoline below about 12%.
Core inflation is stable below forecast
Except for food and energy, the core CPI increased by 0.2% for the month, the forecast below 0.3%. Year after year, core inflation remained stable at 2.8%, meeting expectations. Prominent contributors consisted of medical care (+0.5%), motor vehicle insurance (+0.6%), and household items (+1.0%). After a decline of 5.3% of March, the airline fare continued to decline rapidly, one and 2.8% below.
Food prices flat as a fall in grocery cost
Food prices decreased by 0.1%in April, declining the food at home, declining 0.4%, marking the most decline since 2020. Egg prices declined by 12.7%, drawing meat, poultry, fish and egg index down 1.6%. In contrast, food increased from home 0.4%, under which full-service food increased by 0.6%. Year by year, food prices increase by 2.8%.
Market forecast: caution with further tariff risk
April inflation figures point to a rapid approach to traders with a careful approach, with a price increase loses and slightly below forecasts. While core services remain firm, comprehensive picture policy supports expectations for stability. However, the inflation effect of Trump’s tariff is an open risk in summer, especially if trade stress increases. Traders should monitor close interactions for signals at consumer cost pressures.
