Gina Bolvin, president of Bolvin Wealth Management Group, discusses commodity price trends, expected inflation data, the housing industry and the consumer outlook.
The inflation indicator is Federal Reserve The inflation index was flat in April as rising prices continue to weigh heavily on millions of Americans.
According to the Labor Department, the personal consumption expenditures index showed prices rose 0.3% from the previous month, and 2.7% from a year ago, both figures in line with expectations.
In another sign that inflation remains elevated, core prices, which exclude volatile measures like food and energy, rose 0.2% from the previous month. Compared to a year ago, prices are up 2.8% and unchanged from the past two months.
“The PCE price index isn’t showing any significant progress on inflation, but it’s not showing any setbacks either,” said Chris Larkin, managing director of trading and investing at E*Trade.
Raising a child in the United States is becoming more expensive
The Federal Reserve is targeting the PCE headline to bring consumer prices back to 2%. Chairman Jerome Powell He previously told reporters that the core data is a better indicator of inflation.Both the core and headline data show that inflation is still well above the Fed’s preferred 2% target.
The report said commodity prices rose 0.2 percent during April, including a 1.2 percent increase in energy prices and a 0.2 percent decrease in food prices, while services prices increased 0.3 percent.
Why are groceries still so expensive?
Shoppers shop at a Kroger supermarket on Oct. 14, 2022, in Atlanta. (Elijah Nouvelage/AFP via Getty Images/Getty Images)
High inflation Severe financial pressures Most American households are forced to pay too much for everyday necessities like food and rent, a burden that falls disproportionately on lower-income Americans, whose already tight paychecks are more vulnerable to price fluctuations.
Other figures in the report showed consumer spending rose just 0.2% in April, below expectations for a 0.3% increase and below March’s 0.8% reading. The weaker-than-expected reading suggests Americans are pulling back on spending in the face of rising prices. Many economists expect spending to slow further in coming months as consumers continue to struggle with big-ticket items, high interest rates and a renewed economic crisis. Federal Student Loan Payments.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Me: DJI | Dow Jones Average | 38111.48 | -330.06 | -0.86% |
| I:Comp | Nasdaq Composite Index | 16737.079148 | -183.50 | -1.08% |
| SP500 | S&P 500 | 5235.48 | -31.47 | -0.60% |
This report: Federal Reserve Policy makers are weighing when to start cutting interest rates amid concern that progress in containing inflation has stalled. Central bankers have signaled they are in no rush to cut rates until they are sure inflation is under control, and investors have steadily backed off expectations of a rate cut.
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Stock futures rose on Friday morning after a report showed inflation rose last month, roughly in line with expectations.
“Judging by the initial reaction in equity index futures, the market will likely view this as broadly positive,” Larkin said. “But investors need to be patient. The Fed has signaled it needs more than a month of favorable data to confirm that inflation is credibly declining, and there is still no reason to believe the first rate cut will come any sooner than September.”
