{"id":45320,"date":"2023-05-10T15:35:00","date_gmt":"2023-05-10T14:35:00","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=45320"},"modified":"2023-05-10T20:33:14","modified_gmt":"2023-05-10T19:33:14","slug":"market-wrap-us-cpi-reaction","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/market-wrap-us-cpi-reaction\/","title":{"rendered":"Market Wrap – US CPI reaction"},"content":{"rendered":"\t\t
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This afternoon\u2019s annual CPI release cause the US dollar<\/a> to drop as the US annual inflation rate in the US fell to 4.9% in April 2023, the lowest since April 2021, and below market forecasts of 5%.<\/p>

Stocks rose on the report and the VIX<\/a> dropped by over 2 percent, with the Nasdaq<\/a> rallying by over 1 percent and the S&P500<\/a> gaining by around 0.50 percent.<\/p>

The report showed that annually food prices grew at a slower rate (while energy costs fell further including gasoline<\/a> and fuel oil<\/a>), prompting the market to believe that Fed might not raise rates in June.<\/p>

Shelter cost, which accounts for over 30% of the total CPI basket, slowed for the first time in two years (8.1% vs 8.2%) and prices for used cars and trucks declined once again.<\/p>

Compared to the previous month, the CPI rose 0.4%, much higher than 0.1% in March but matching market expectations. The shelter was the largest contributor to the monthly all-items increase, followed by used cars, trucks, and gasoline.<\/p>

US core consumer prices, which exclude volatile items such as food and energy, rose by 0.4 percent from a month earlier in April of 2023, unchanged from the previous month and in line with market expectations.<\/p>

Consumer costs rose considerably for used cars and trucks, halting a long series of decreases, and continued to rise for shelter and medical care. Year-on-year, core consumer prices advanced by 5.5%.<\/p>

The largest upward contribution came from the cost of shelter (0.4%), used cars and trucks (4.4%) and gasoline (3%). Meanwhile, food prices were flat, and costs fell for natural gas<\/a> airline fares and new vehicles.<\/p>

It was also reported that China has asked banks to lower their rate ceilings on some retail and corporate deposits, starting from 15 May.<\/p>

And that the big four state-owned banks are to lower their rate ceilings by 30 basis points, with some other financial institutions even called to cut by 50 basis points.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

This afternoon\u2019s annual CPI release cause the US dollar to drop as the US annual inflation rate in the US fell to 4.9% in April 2023, the lowest since April 2021, and below market forecasts of 5%. Stocks rose on the report and the VIX dropped by over 2 percent, with the Nasdaq rallying by […]<\/p>\n","protected":false},"author":4,"featured_media":13533,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[327,27,193,67,279,169],"yoast_head":"\nMarket Wrap - US CPI reaction - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/market-wrap-us-cpi-reaction\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Market Wrap - US CPI reaction Market Wrap - US CPI reaction\" \/>\n<meta property=\"og:description\" content=\"This afternoon\u2019s annual CPI release cause the US dollar to drop as the US annual inflation rate in the US fell to 4.9% in April 2023, the lowest since April 2021, and below market forecasts of 5%.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/market-wrap-us-cpi-reaction\/\" \/>\n<meta property=\"og:site_name\" content=\"Youtrading UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/YouTradingEnglish\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-10T14:35:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-10T19:33:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/08\/GettyImages-1130514496-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"508\" \/>\n\t<meta property=\"og:image:height\" content=\"303\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nathan Batchelor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Market Wrap - 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