#CPI Hot?


April inflation Accelerating again, headline hit 3.8%
🔹 Headline +0.6% MoM, 3.8% YoY, up from March 3.3%
🔹 Core +0.4% MoM, 2.8% YoY, both beating forecasts of 3.7% and 2.7%
🔹 Gasoline surged 5.4% MoM, 28.4% YoY
🔹 Shelter climbed 0.6% MoM, keeping pressure elevated
🔹 Energy alone drove over 40% of monthly gain, Iran conflict fueling prices
Fed target sits at 2%, market now pricing delayed cuts
Crypto reaction: risk assets Rejected initial dip, Bitcoin Accumulating around liquidity pockets
Friends, sticky inflation back on menu, are you adding hedges or buying the dip?
#AprilCPIComesInHotterAt3.8% #GateSquareMayTradingShare
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#AprilCPIComesInHotterAt3.8%
CPI Just Hit 3.8%

April inflation data landed hot. Your paycheck just took a hit.

🔹 The Numbers
Headline CPI jumped to 3.8% year-over-year, up from 3.3% in March and above the 3.7% forecast .
Core CPI climbed to 2.8%, also above expectations .
Monthly pace: 0.6% rise, matching estimates but still aggressive.

🔹 What Drove It
Energy prices accounted for 40% of the monthly jump. Gasoline surged another 5.4% in April on top of March's wild 21% spike .
Oil hovering above $100 per barrel keeps fuel costs elevated as the Middle East conflict disrupts supply .
Food prices reversed course, rising 0.5% after staying flat in March .

🔹 The Real Pain Point
Real average hourly wages turned negative for the first time since April 2023 .
Inflation is now outpacing paychecks. Fresh produce prices alone jumped 2.3% in a single month, the sharpest move in 16 years .

🔹 Shelter's Technical Twist
Housing costs rose 0.6% for the month. Part of that stems from a data quirk. Last October's government shutdown forced the BLS to skip rent surveys. April's reading caught up with a six-month adjustment, pushing shelter figures higher than the underlying trend .

🔹 Market Reaction
S&P 500 slipped from record highs, dropping 0.62% .
Nasdaq 100 fell 1.76% as rate-sensitive tech stocks got hit .
Gold dipped sharply, losing the $4,700 level as rate expectations shifted .
CME FedWatch now shows a 30% to 31% chance of a rate hike by December, up from 19% just a day earlier .

🔹 Fed's Fork In The Road
Markets fully priced out rate cuts through 2026. The debate has flipped from "when will they cut" to "will they hike" .
Kevin Warsh steps into the Fed Chair role soon. His call: look past the energy shock or tighten to contain spillover into broader prices .

🔹 The Tariff Wildcard
Rumors swirl that a federal gas tax cut is under consideration ahead of midterm elections. Analysts dismiss the impact, noting it barely offsets a fraction of the roughly $1 per gallon rise since the conflict began .

Bottom Line
Energy shock plus shelter data catch-up plus food price revival equals a tough April print. The report alone does not scream rate hike, but it slams the door on near-term cuts. Wage erosion makes this inflation stickier for Main Street than the headline suggests.

Friends, your read: temporary energy blip or early signal of a broader spiral?
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· 13m ago
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· 43m ago
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· 1h ago
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· 1h ago
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· 1h ago
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· 2h ago
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· 2h ago
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discovery
· 2h ago
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