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Economic Commentary

Overall CPI down, but core inflation is up

May 16, 2022
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Growth in the overall consumer price index (CPI) slowed for April, mostly because of a (temporary?) decline in gasoline prices. But the core CPI, removing the volatile food and energy components and often viewed as a better measure of underlying inflation than the total, grew more rapidly for April. Meanwhile, April small businesses optimism remained subdued while consumer sentiment fell to the lowest level since 2011 for early May.

What we learned last week: (pg. 1)

  • Consumer prices remain impacted by supply chain problems
  • The expectations component of consumer sentiment continues to decline

What we’re watching this week: (pg. 2)

  • More strong growth expected for retail sales
  • Housing starts expected to edge lower
  • Existing home sales likely to fall amid decreasing affordability

Podcast: Inflation continues. Is relief on the way? (14 min)

Nationwide’s Deputy Chief Economist Bryan Jordan and Senior Economist Ben Ayers take a closer look at the CPI report.

  • What sectors are being impacted the most?
  • Where do we see some relief?
  • How is this cycle different than previous inflations?
  • What’s the outlook for the months ahead?

Listen here.

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