Summary
- Headline inflation rose 0.2% in April, below the consensus estimate of 0.3%.
- Core inflation was up 0.1% for the month and has increased 2.1% over the last 12 months. That’s the definition of ‘moderate inflation.’
- Non-seasonally adjusted inflation was up 0.4% in April, meaning holders of TIPS will see principal balances rise 0.4% in June.
Read my full analysis on SeekingAlpha.com
Also, I have updated my Tracking Inflation and I Bonds page with these new numbers.
And here are the new June inflation indexes for all TIPS.
This discussion raises in my mind what is the optimal amount of inflation bonds to hold in a diversified bond…