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News Link • Economy - Economics USA

CPI Better than Expected Thanks to a Drop in the Price of Food

• Mish Talk

CPI month-over-month data from the BLS, chart by Mish

The BLS CPI Report for April was a mixed basket of good, bad and indifferent. Here are the numbers.

CPI Month-Over-Month Details

• The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent on a seasonally adjusted basis in April.

• The index for shelter rose 0.3 percent in April, accounting for more than half of the all items monthly increase. Owner's Equivalent Rent (OER) rose 0.4 percent and rent of primary residence rose 0.3 precent.

• The energy index also increased over the month, rising 0.7 percent as increases in the natural gas index and the electricity index more than offset a decline in the gasoline index.

• The index for food fell 0.1 percent in April as the food at home index decreased 0.4 percent and the food away from home index rose 0.4 percent over the month.

• The index for all items less food and energy rose 0.2 percent in April, following a 0.1-percent increase in March.

• Indexes that increased over the month include household furnishings and operations, motor vehicle insurance, education, and personal care.

• Medical care services rose 0.5 percent and medical care commodities rose 0.4 percent.

• The indexes for airline fares, used cars and trucks, communication, and apparel were among the major indexes that decreased in April.

It's great that food at home dropped 0.4 percent. But it's not exactly good news that food away from home rose 0.4 percent.


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