Underlying US Inflation Moderated Slightly in April

The video discusses the accuracy of economists' forecasts for the Consumer Price Index (CPI), noting that the month-over-month changes for both headline and core CPI matched expectations. It highlights a slight increase in headline CPI compared to the previous month and a decrease in real average weekly and hourly earnings. The discussion also covers potential inflation risks and market reactions, particularly in two-year yields. Key price changes in energy, used cars, and commodities are analyzed, with a focus on their impact on the CPI. The Federal Reserve's expectation of a volatile inflation process is also mentioned.

What was the month-over-month change in the headline CPI as forecasted by economists?

• 0.1%

• 0.4%

• 0.5%

• 0.3%

What was the year-over-year change in the core CPI as expected?

• 5.1%

• 5.5%

• 5.0%

• 4.9%

What concern is raised about the CPI data in relation to inflation risks?

• The data suggests a deflationary trend.

• The data indicates a reaccelerating inflation risk.

• The data points to a decrease in inflation risks.

• The data shows stable inflation with no risks.

Which sector experienced a significant decline, providing some energy relief?

• Apparel

• Used Cars

• Natural Gas

• Gasoline

What is the expected nature of the inflation process according to the Fed?

• Stable and consistent

• Rapidly decreasing

• Volatile with fluctuations

• Linear and predictable