A good CPI report?

in economy •  2 years ago 

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Relatively good CPI report. Headline CPI came in at a great 0.1% month to month. Core CPI was hotter at 0.4% month to month, but down from February. Core is generally what the Fed is looking at even though headline inflation gets all the news attention.

Shelter again contributed to the upside. But the good news here is that shelter is lagging and should continue to fall. The Fed tends to prefer core PCE, where shelter is relatively less significant than CPI.

Probably not enough to make the Fed pause on interest rate hikes, especially with the good jobs report. But still a good sign.

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