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April CPI At 0.4%, In Line With Expectations, Core Up 0.2%, Gasoline Accounts For Half Of Price Increase

Tyler Durden's picture




 

April consumer inflation rose 0.4% in April, in line with expectations, and 3.2% year over year. This is a modest drop in the monthly increase from 0.5% in March, while the Y/Y number was an increase from 2.7% to 3.2%. The energy index posted another increase in April as the gasoline index continued to rise, the latter accounting for almost half of the seasonally adjusted all items increase. For those who eat in addition to use energy, the BLS had this to say: "The food index increased as well in April, though the 0.5 percent rise in the food at home index was the smallest increase this year." Still: "Within the food at home component, the indexes for meats, poultry, fish, and eggs, for dairy and related products, and for nonalcoholic beverages all posted notable increases, though the fresh vegetables index did decline following recent advances." Core CPI rose for 0.2%: the third such increase in 4 months. Overall, CPI continues to be far less than indicated by the MIT BPP.

From the report:

Food

The food index rose 0.4 percent in April after rising 0.8 percent in March. The food at home index, up 1.1 percent in March, rose 0.5 percent in April. The deceleration was mainly due to the fresh vegetables index, which turned down in April, falling 2.7 percent after posting large increases in each of the previous two months. This led to the fruits and vegetables index declining 1.1 percent, the only major grocery store food group to decline in April. In contrast to this decline, the index for dairy and related products rose 1.7 percent, the index for nonalcoholic beverages advanced 1.2 percent, and the index for meats, poultry, fish, and eggs increased 1.1 percent. The indexes for cereals and bakery products and for other food at home posted smaller increases. The food at home index has risen 3.9 percent over the last 12 months, with all major grocery store food groups increasing over the period. The index for food away from home rose 0.3 percent in April, the same increase as in March.

Energy

The energy index rose 2.2 percent in April. This is the tenth increase in a row and follows advances of 3.5 percent in March and 3.4 percent in February. The gasoline index rose 3.3 percent in April after a 5.6 percent increase in March. (Before seasonal adjustment, gasoline prices rose 7.5 percent in April.) The index for household energy also increased in April, rising 0.7 percent. The fuel oil index rose 3.2 percent, continuing a strong upward trend, while the index for electricity increased 0.2 percent. The index for natural gas, which declined in March, rose 1.9 percent in April. The household energy index has risen 1.9 percent over the last 12 months, with the fuel oil index up 35.1 percent and the electricity index up 0.6 percent but the index for natural gas down 1.5 percent.

 

 

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Fri, 05/13/2011 - 08:40 | 1271209 FoieGras
FoieGras's picture

Of course CPI is far less than the MIT BPP because the BPP doesn't take services (hair dresser, cleaning lady, pool guy etc) and housing/rent into account.

Fri, 05/13/2011 - 08:52 | 1271232 oh_bama
oh_bama's picture

Did I tell you INFLATION IS WAY TOO LOW?

DID I tell you BTFD!!?

Fri, 05/13/2011 - 09:29 | 1271349 Thomas
Thomas's picture

What scares me is that the guys monitoring inflation--a quantitative measure of unquestioned importance--haven't a clue what a significant figure is.

Fri, 05/13/2011 - 09:06 | 1271265 SheepDog-One
SheepDog-One's picture

Right, throw in things like the Ferrari mechanic on retainer and the polo pony stable crew, the pinch is gettin REAL!

Fri, 05/13/2011 - 09:07 | 1271272 LongSoupLine
LongSoupLine's picture

"The important thing here is, high end retailers are up" - Bob Pisani, Friday morning.

 

fukin' dik head!

Fri, 05/13/2011 - 08:40 | 1271210 Xibalba
Xibalba's picture

it's a lot easier to ramp the futures these days.....

Fri, 05/13/2011 - 09:12 | 1271283 LongSoupLine
LongSoupLine's picture

"The futures market has remained stable, even through the crisis" - Gary Gensler, CFTC (really Goldman)

 

May that asshat be hit by a "futures" truck.

Fri, 05/13/2011 - 08:51 | 1271211 Caviar Emptor
Caviar Emptor's picture

Meanwhile, real average weekly earnings fell by 0.3% over the month in April. Since reaching a peak in October 2010, inflation-adjusted weekly earnings have dropped by 1.7%. Food prices, meantime, rose by 0.4% in April after a 0.8% increase in March(Dow Jones) 

Once again biflation is in full force as cost of living rises and real wages and real estate values plunge. 

If you're in the middle class enjoy! You won't be for too much longer

Fri, 05/13/2011 - 08:52 | 1271238 cossack55
cossack55's picture

Yippee!!!  Am I going to upper-middle class or all the way to upper class? Its about time.  Do I get a new SNAP card?

Fri, 05/13/2011 - 09:00 | 1271248 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

"It's a big burden being in the middle class. You're supposed to go to work, pay your taxes and vote for whoever they want you to vote for.

Maybe it's better just to be poor and down trodden ..."

-- The Book of Lloyd, Chapter 1

Fri, 05/13/2011 - 09:03 | 1271264 Pullmyfinger
Pullmyfinger's picture

Ponder on your assumptions: i.e. "supposed to." That's a social control mechanism talking through your mouth. That's how the world got into the shape it's in now.

 

If I was a book burner, I'd start with this "Book of Lloyd." :)

Fri, 05/13/2011 - 08:42 | 1271212 Racer
Racer's picture

And a lot of the food I buy has gone up 20 to 30% in the last month....

Fri, 05/13/2011 - 08:46 | 1271222 FoieGras
FoieGras's picture

50 years ago my late Dad said "I don't get it. Why do people plant and irrigate lawn? Why not veggies?".

I'll buy the food inflation scare when I see people planting tomatoes and carrots in their backyards instead of 1000sqft of perfectly manicured lawn.

Fri, 05/13/2011 - 08:48 | 1271229 Hi Ho Silver
Hi Ho Silver's picture

HOA won't allow it. They won't allow my free egg generators either. Exactly the reasons I'm moving out of the suburbs.

Fri, 05/13/2011 - 10:30 | 1271617 DeadFred
DeadFred's picture

Our HOA president is OK with my 60 tomato plants as long as she gets her cut delivered to the door.

Fri, 05/13/2011 - 08:49 | 1271233 Racer
Racer's picture

I am now growing a lot of my own food

Fri, 05/13/2011 - 08:53 | 1271239 cossack55
cossack55's picture

Stop by. Screw a lawn.

Fri, 05/13/2011 - 08:46 | 1271225 Caviar Emptor
Caviar Emptor's picture

Beef prices hit a record this month

Cattle futures reached a record $1.21625 a pound on April 4 and are up 18 percent in the past year (Bloomberg)

Fri, 05/13/2011 - 08:48 | 1271215 Al Gorerhythm
Al Gorerhythm's picture

Headline from MSM:

Gas went up because of price increases.

Fri, 05/13/2011 - 09:18 | 1271319 uhb
uhb's picture

WOW!

You've got real geniuses working there ;)

Fri, 05/13/2011 - 08:44 | 1271217 Caviar Emptor
Caviar Emptor's picture

BIflation gives the FED perfect cover for QE3: they can claim "no inflation" simply because as cost of living rises, housing deflates (and it's 40% of the CPI calculation).

They can also point to "no wage inflation" to their overlords. 

It's in the bag!

Fri, 05/13/2011 - 08:47 | 1271223 Mises
Mises's picture

Up is Down, Bad is Good.......EINHORN IS A MAN!!!

Fri, 05/13/2011 - 08:49 | 1271228 Caviar Emptor
Caviar Emptor's picture

You will never see a strong CPI under biflation. It will always cancel to near zero.

Lotsa Luck!

Fri, 05/13/2011 - 08:51 | 1271236 RobotTrader
RobotTrader's picture

Welcome to the Command and Control economy, run by the greatest central banker of all time.

No inflation this time, either.  Looks like inflation will be permanently capped from now on as any whiff of commodity speculation will be snuffed out with margin hikes.

No doubt, thousands of hedge funds were run out of business this week.  Commodities are now destined to underperform, and worse, commodity stocks have been succesfully smashed into oblivion.

Note how names like KGC are trading at 3-year lows, same price as when gold was trading at $400 over 6 years ago.  And big cap drillers like RIG, now trading at the same price as when oil was at $50.

Meanwhile, I'm watching the pre-market, and names like Dillard's, Aligent, and Tyco are gapping up another $3 after already monsterous runs, because those names are Fed-sponsored and TPTB-supported.

Looks like the careers of guys like Rosie, Jeffrey Gundlach, Nic Lenoir, Paul Farrell have been ruined.  Those poor guys have had their faces smashed in and their noses rubbed into a pile of Infinite Fiat.

And now that fool "Sugar High" El-Erian is on the tube talking about the Greek bond meltdown and how it could spread to the rest of the globe.

I'm sure El-Erian is nervously eyeballing the SPY today, wondering if it is going to break out to new high, which will force him to use his $85 billion cash hoard to buy stocks.

LOL...

 

Fri, 05/13/2011 - 08:59 | 1271244 Caviar Emptor
Caviar Emptor's picture

There's a glitch in your theory: you don't see inflation because it's biflation. It's stealth hidden but it's there.  So wages and real net worth are fallnig which will whack the middle class's buying power month after month after month (as we've seen for over a year). Good luck with your consumer stocks, baby!

Fri, 05/13/2011 - 09:34 | 1271386 Pullmyfinger
Pullmyfinger's picture

Are you calling it "stealth" inflation just because the government refuses to report it? Because I see it every day. Nothing stealthy about it.

Fri, 05/13/2011 - 08:56 | 1271245 cossack55
cossack55's picture

I don't know shit about trading except that one had better be freakin nimble. I can't imagine being nimble with $85 bil.

Fri, 05/13/2011 - 09:06 | 1271261 Cassandra Syndrome
Cassandra Syndrome's picture

"It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a 'dismal science.' But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance."

Murray N. Rothbard

Fri, 05/13/2011 - 08:55 | 1271241 lizzy36
lizzy36's picture

Binge/Purge cycle continues.

Binge on risk, then when latest piece on Greece comes out, PURGE away.

Everyone on the same side of the boat. Forex/crude determines all right now.

For that you pay 2/20 and whatever the ridiculous mutual fund group think fee is.

Fri, 05/13/2011 - 09:03 | 1271262 anynonmous
anynonmous's picture

the smart money pays 2/20 for access to expert networks

Fri, 05/13/2011 - 09:23 | 1271322 lizzy36
lizzy36's picture

and soon 3/30 for access to "clean" phone lines.

Fri, 05/13/2011 - 09:00 | 1271246 GetZeeGold
GetZeeGold's picture

 

 

Everyone knows gas doesn't count.

 

 

Fri, 05/13/2011 - 09:00 | 1271247 Outragedous
Outragedous's picture

Longtime lurker first time commenter: How do I submit a story to Zerohedge?

Nothing fancy, just laying out the congressional testimony of Goldman staff versus their emails, and how this is a clear cut case for prosecution for perjury.

Additionally I'd like to advance the idea of a class action lawsuit. If everyone chipped in say $20 or $50 to support it and back up those who had their money stolen we might have a chance at real justice.

I'd like to make clear I haven't been affected by Goldmans' fraud but I'd like to see them bought to justice, and if we can collect enough money we may make them pay yet, irrespective of the politicians. 

Fri, 05/13/2011 - 09:03 | 1271256 tmosley
tmosley's picture

On the right side of the screen there is a box titles "The Zerohedge Team".  There is an email address there for tips. 

Fri, 05/13/2011 - 10:05 | 1271510 MachoMan
MachoMan's picture

You don't need to pony up a retainer for a case with a high likelihood of success at obtaining a giant recovery...  these sorts of things sell themselves.

Fri, 05/13/2011 - 19:56 | 1273355 alexanderstollznow
alexanderstollznow's picture

so youre not affected by Goldman Sachs, but you want to be part of a class action against them?

Fri, 05/13/2011 - 08:58 | 1271250 dollartheque@ya...
dollartheque@yahoo.com's picture

Robot trader your pic. is HOT

Fri, 05/13/2011 - 09:03 | 1271255 GetZeeGold
GetZeeGold's picture

 

Robot trader your pic. is HOT

 

Remember that when you're paying $5 a gallon....and it won't hurt so bad.

 

 

Fri, 05/13/2011 - 09:16 | 1271306 cowdiddly
cowdiddly's picture

I noticed the gas pump prices thought about as much of their little commodity raid as the phyical silver market did. No effect on real world prices. I think its now two cents ceaper here. Yippppppeeeeeee

Fri, 05/13/2011 - 10:24 | 1271606 baby_BLYTHE
baby_BLYTHE's picture

A picture is really worth a thousand words. Robotrader has been outed as the creeper troll he doesn't even pretend to hide (see below):

http://www.youtube.com/watch?v=ubpwmCai93g

Fri, 05/13/2011 - 20:20 | 1273396 Rynak
Rynak's picture

LOL

Nice to see you back alive and kicking, bB.

Fri, 05/13/2011 - 09:01 | 1271251 Franken_Stein
Franken_Stein's picture

 

Didn't Bernanke at Princeton write an essay called:

"Deflation: Make sure it won't happen (here) ?"

 

So Princeton is the Mecca of U.S. keynesians who advocate for a demand driven economy on credit binge ?

Did I get that right as both economic layman and non-U.S. citizen ?

 

And supply-side driven economic thinking is "Austrian school", hence the name "austerity", right ?

 

Fri, 05/13/2011 - 09:04 | 1271259 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I don't even look at government economic statistics any more.  Hey gang, the emperor has no clothes!

 

--Tuco Benedicto Pacifico Juan Maria Ramirez

Fri, 05/13/2011 - 09:40 | 1271393 Shock and Aweful
Shock and Aweful's picture

Strange too that Woodrow Wilson (who was the president who allowed the federal reserve bank to be established) was also a big shot at Princeton....he was the president of Princeton before taking the oath of office for the President of the United States.

I'm just sayin.....hahaha

 

Fri, 05/13/2011 - 09:15 | 1271296 unununium
unununium's picture

Could these jokers possibly get to 2 significant digits?  On top of everything else we are expected to swallow "information" from a total universe about 4 possible values.

Ooh, I hope it's not 0.4% this month!  0.3% is so much better and would match consensus EXACTLY!

Fri, 05/13/2011 - 09:37 | 1271395 Sausagemaker
Sausagemaker's picture

"My guess is you will be able to protect yourselves. ...You're used to prevailing," said Sen. Jay Rockefeller, D-W.Va. Oil companies, he added, are "deeply and profoundly committed to sharing nothing."

So says Jay Rockefeller (of Standard Oil heritage) - A modern day James Taggart?

http://finance.yahoo.com/news/Senate-Democrat-Big-oil-apf-1870942321.html

Fri, 05/13/2011 - 09:55 | 1271478 Bansters-in-my-...
Bansters-in-my- feces's picture

Boy....sure lucky I don't eat or use fuel.....

or believe govt statistics.

Fri, 05/13/2011 - 10:00 | 1271490 Bansters-in-my-...
Bansters-in-my- feces's picture

Rockefellers suck Rothschilds cocks....

And love it...

Fucking inbred faggots.

Fri, 05/13/2011 - 10:13 | 1271538 Bansters-in-my-...
Bansters-in-my- feces's picture

"Robot trader your pic. is HOT"

Feeling a little lonely are we.???

Fri, 05/13/2011 - 10:16 | 1271556 Bansters-in-my-...
Bansters-in-my- feces's picture

RobotTrader is a Keynesian Kook,and would lick the sweat off of any Keynesian Kings balls.
Puppet.

Fri, 05/13/2011 - 12:52 | 1272143 AldoHux_IV
AldoHux_IV's picture

"The smallest increase yet this year."

Ha, now that's rich-- less bad is good.

Fri, 05/13/2011 - 20:06 | 1273366 alexanderstollznow
alexanderstollznow's picture

so, another month passes and hyperinflation hasnt arrived.  and to think, with $1.5bn of mbs buying and $0.3bn of Treasury buying already in the bag, and now another $0.6bn of Treasury buying just about completed, and still no hyperinflation!  no wonder some of the posters above are getting so agitated, because boy are a lot of people going to look silly if hyperinflation doesnt eventuate.

still, there might be a way out:  the ZHTB  (zero hedge true believers) can just take the CPI, and add back all the components which fell during the month, to get the true CPI.  just like ZH subtracts positive seasonal adjustments from the non farm payrolls to show why the seasonally adjusted number isnt really high or higher than expected.

 

so here is a question for ZHTB: when is hyperinflation going to appear?  the nearest Q would suffice. if its coming is so bleeding obvious, then it shouldnt be too hard to estimate that?  perhaps a proper ZH post on the subject would be good;  you know, so it can be referred to at a later date.

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