Report by Link Securities
The Department of Labour announced on Tuesday that the Consumer Price Index (CPI) rose by 0.6% in the United States in April compared with March, a figure in line with the consensus forecast by FactSet analysts. In April, energy prices rose by 3.8%, due to the war with Iran and the closure of the Strait of Hormuz.
Furthermore, in April housing prices rose by 0.6%, whilst food prices rose by 0.5%, with a 0.7% rise in food prices for consumption at home and a 0.2% rise in food prices for consumption outside the home. Prices for furniture and household maintenance products, airfares, personal care, clothing and education also rose during the month. Conversely, prices for new vehicles, communications and healthcare fell during the month.
On a year-on-year basis, the US CPI rose by 3.8% in April (3.3% in March), slightly above the 3.7% expected by the consensus.
On a year-on-year basis, energy prices rose by 17.9% (up from 12.5% in March), mainly due to increases in the prices of petrol (28.4% compared to 18.9% in March) and heating oil (up 54.3%). Prices also rose for housing (3.3% against 3.0% in March) and for food (2.3% against 2.7% in March).
The core CPI, which is calculated excluding unprocessed food and energy prices, rose by 0.4% in April compared with March, slightly above the 0.3% expected by the consensus. On a year-on-year basis, the core CPI rose by 2.8% in April (2.6% in March), exceeding the 2.7% forecast by analysts.
