Editor
In April, all urban CPI consumers were well received by all marketers in the U.S
Wall Street traded in a mixed fashion despite the well-received inflation data. As the date approached, by the use of statistics, the CPI rate for all urban consumers rose by 0.3% in April, a total of 3.4% year-over-year increase. The core CPI, excluding food and energy, rose by 0.3% in April and by 3.6% year-over-year. Excluding energy and food, the April CPI increases consider the seasonal increase in all urban consumers from April 2021.
As for the PPI for the final demand, the date scored a total of 0.5% in the previous month, with a 2.2% annual increase. Overall, the data were welcomed by most market participants, but for some, it was not enough to start interest cuts later this year. This includes Federal Reserve Bank of New York President John Williams, who has indicated that, despite the bad news, it is not enough to decide the next meeting for interest rate cuts. William acknowledged the fact that this day was more than cartulary in the light of recent market turmoil, but added that “I don’t see any indicators now telling me… there’s a reason to change the stance of monetary policy now, and I don’t expect that; I don’t expect to get that greater confidence that we need to see on inflation progress towards a 2% goal in the very near term.”
St. Louis Federal Reserve president Loretta Mester shares the same opinion as John Williams and shares that the path to a 2% inflation rate will take much longer to achieve. Loreta says, “I now believe that it will take longer to reach our 2% goal than I previously thought,” Mester said, adding that further monitoring of incoming data will be needed.
“We will need to accumulate further data over the coming months to have a clearer picture of the inflation outlook,” she added. Moreover, with all this complexity, the Biden administration and the current U.S. president Biden are more likely to lose votes due to their poor management of inflation without considering other essential crises such as the Russian war and the Iran-Israeli conflict, which is heading to become a regional war in the worst cases. Keeping it within the common CPI index, throughout the Biden term, the data shows that the index has surpassed the headline inflation number in 34 out of 40 months.
In other economic news, the energy sector oil prices rose by 0.9% for both benchmarks; the West Texas crude oil jumped to $79.33 per barrel, while the Brent crude oil was up to $83.41 per barrel.
As in the U.S., oil inventories have raised expectations of tight gasoline supplies in the upcoming summer. This explanation was repeated after the date, resulting in a larger-than-expected reduction in oil inventories.
The S&P 500 benchmark was up by 0.06% to 5,310,60 basis points, reaching its highest record this year so far. The Dow Jones rose by 0.16% to 39.969.60 basis points. Meanwhile, the Nasdaq composite declined by 0.03%.
