Daily Spotlight: More Positive Inflation Readings

Argus

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Apr 14, 2025

Summary

Two important ostentation reports -- the Consumer Price Index (CPI) and the Producer Price Index (PPI) -- were released precocious and some signaled that pricing pressures are again easing. For now. Both indicated that wide pricing pressures stay good beneath highest rates successful summertime 2022 but that ostentation remains supra the Fed's people of 2.0%. Let's instrumentality a deeper dive into the CPI. The quality present was amazingly good, arsenic the annualized header fig ticked little from the erstwhile period (2.4% versus 2.8%). According to the latest CPI report, the halfway ostentation complaint (ex-food and energy) besides declined, to 2.8% from 3.1% the anterior month. Again, the most-encouraging information was related to Transportation Services and Shelter costs. In these sticky categories, ostentation rates twelvemonth implicit twelvemonth person declined meaningfully. Gas prices are besides sharply little twelvemonth implicit year, which should delight consumers. Meanwhile, PPI measures pricing trends farther up the proviso chain, astatine the manufacturing level. Here, the quality besides was mostly positive. For example, the PPI last request yearly complaint done March was 2.7%, compared to 3.2% a period agone and 3.7% successful January. Based connected the fundamentals, we expect pricing pressures to proceed easing arsenic the lodging marketplace cools owed to precocious owe rates, supplies of caller vehicles are replenished, and the terms of lipid