CPI: -0.7% YOY Through April, Core CPI +1.9% YOY. Inflation Concerns Returning.

The US Consumer Price Index, which measures inflation at the consumer level of the economy, was 0.0% in April and -0.7% year-over-year through April. Excluding volatile oil and food costs from the readings, “Core” CPI for April was +0.3% and +1.9% YOY through April. You can view and download historical CPI data by scrolling down to our Data section on the right side of the site.

Inflation is within the Fed’s comfort zone of 1-2% but it was hotter than anticipated. As we mentioned yesterday with the PPI reading measuring inflation at the manufacturing level of the economy, we’ve taken a sharp turn from deflationary concerns in February to inflation concerns now. Much of this stems from rising oil prices heading into the summer driving season and in a longer-term sense, many market participants feel inflation is the ultimate effect of massive government stimulus.