Tuesday, March 12, 2013

CPI Has Surprise Dip, Led by Energy Prices

Another negative indicator for inflation watchers in the U.S.: the Department of Labor this morning reported that the Consumer Price Index fell by 0.1% in April from March, led by a 1.4% decrease in energy prices, with significant declines for gasoline and natural gas. Food prices were up 0.2%.

“Core CPI” excluding food and energy was flat for the month.

The dip in the overall CPI follows a 0.1% rise in March and compares to economists’ expectations for a 0.1% rise, suggesting costs are somehow managing to stay in check at this point.

This morning’s report follows yesterday’s announcement by the Department that Producer Prices in April also fell 0.1%, also lower than the 0.1% rise that had been expected.

The Dow has now trimmed some of its losses in the futures market this morning, down only about 40 points at 10,450 for the June futures.

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