Core CPI (which excludes food and energy prices) increased 0.38% in April, above expectations; the year-over-year rate increased 2.75%.
Headline CPI rose 0.64% (+3.81% year over year), reflecting higher energy (+3.8%) and food (+0.5%) prices.
Let’s take a closer look at Goldman Sachs Research’s breakdown of the data from the latest report.
This report included two months’ worth of rent and owners’ equivalent rent (OER) inflation, which went unmeasured 6 months ago because of the federal government shutdown. Rent and OER inflation contributed about 13 basis points more to core CPI in April than their average contribution over the prior three months.
Meanwhile, lodging, airfares, and household operations each boosted core CPI by about 4 basis points in April:
Electronics prices increased meaningfully in April (likely reflecting upward pressure on prices from AI-related demand for electronics inputs).
On the softer side:
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