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Saturday, May 30, 2020 3:05:41 PM EDT

CPI Updated 12-May-20 09:30AM ET

The Consumer Price Index declined 0.8% m/m in April, as expected, while core CPI, which excludes food and energy, declined 0.4% ( consensus -0.2%). That was the largest drop in total CPI since December 2008 and the largest drop on record going back to 1957 for core CPI.

On a yr/yr basis, total CPI increased 0.3% (the smallest increase since October 2015) while core CPI increased 1.4% (the smallest increase since April 2011).

There was some inflation to be seen, however. Led by a 2.6% jump in food at home prices, the food index increased 1.5%, which was its largest increase since February 1974.

The gasoline index plummeted 20.6% and was the biggest contributor to the monthly decrease in the all items index.

The shelter index was flat, as a 0.2% increase for both rent and owners' equivalent rent was offset by a 7.1% drop in the index for lodging away from home.

The index for used cars and trucks declined 0.4%.

The index for apparel declined 4.7%, which was the largest drop on record.

The medical care index rose 0.4%.

The key takeaway from the report is that it is a telltale reminder that the Federal Reserve isn't moving off the zero bound anytime soon.
All Items-0.8%-0.4%0.1%0.1%0.2%
Food and Beverages1.4%0.3%0.4%0.2%0.2%
Equivalent Rent0.2%0.3%0.2%0.3%0.2%
Motor Fuel-20.6%-10.5%-3.4%-1.6%3.1%
Medical Care0.4%0.4%0.1%0.2%0.5%
Educ and Commun0.1%0.1%0.1%0.3%0.1%
Special Indices