U.S. Inflation Rose 0.3% In April, Driven By Higher Gas Prices

Summary

  • The 0.3% increase in the Consumer Price Index fell slightly below the consensus estimate, so no shock to the markets.
  • Core inflation rose at an annual rate of 2.1%, showing that inflation exists outside of rising gasoline prices.
  • Good news for holders of TIPS: June principal balances will rise by 0.53%, following increases of 0.56% in June and 0.43% in May.

The April inflation report again pointed to energy costs as the primary driver of U.S. inflation. The gasoline index rose 5.7% for the month, and is now up 3.1% over the last 12 months, reversing a long trend of declining prices.

Read my full analysis on SeekingAlpha.com

Also, I’ve updated my Tracking Inflation and I Bonds page with the new numbers.

And I updated the TIPS Vs. Nominals page with results for the 5-year TIPS that matured in April. That TIPS under-performed a nominal Treasury by 0.34% a year.

And here are the new June Inflation Indexes for all TIPS.

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About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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1 Response to U.S. Inflation Rose 0.3% In April, Driven By Higher Gas Prices

  1. Gordon Pedersen says:

    NRN. Thanks for sharing the benefits of your TIPS studies, they form part of the basic data points I try to track.

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