- CPI +3.0% vs +3.0% y/y prelim
- Prior +2.6%
- Core CPI +2.2% vs +2.2% y/y prelim
- Prior +2.3%
Services inflation continues to be the main sticking point, but is at least seen easing to 3.0% in April (previously 3.3%). Meanwhile, food price inflation is still keeping thereabouts at 2.4% (previously 2.5%). But with regards to the headline reading, energy price inflation is the main category that is bringing up prices. On a monthly basis, energy prices were up 3.0% and up 10.8% on an annual basis. On the latter, that is a marked step up from the 5.1% estimate in March.
All in all, this just points to a continued uptick in headline price pressures as the US-Iran conflict drags on. And the impact of that will be more evident in broader categories as higher energy costs become more embedded into other parts of the economy.
With there still being no resolution to the war, expect prices to stay underpinned in Q2 and even in the early stages of Q3 at the very least.
The more detailed breakdown of the report above can be seen below:
