US: CPI figures rebounded in April - ANZ

Analysts at ANZ explain that following the unexpected monthly drop in March headline and core inflation, US CPI figures rebounded in April, although the y/y rates came in 0.1%pts below expectations, at 2.2% y/y and 1.9% respectively.

Key Quotes

“Core inflation dropped below 2.0% for the first time since October 2015. With oil prices stabilising, headline rates of inflation have peaked and more moderate data is expected in the coming months, although the April PPI data and labour market figures suggest that pipeline inflation pressures are building. So it’s still a story where the Fed will continue with the job at hand but in a gradualist manner.”