The year-on-year increase in consumer prices was 3.9 per cent, down from 4.0 per cent in March despite registering the fastest gain in food prices in 18 years. Core inflation, which strips out volatile food and energy prices and which is used by the Fed to guide interest rate policy, was 2.3 per cent in April.
The month-on-month increase in headline inflation was 0.2 per cent, when economists had an average forecast of 0.3 per cent, but a row broke out almost immediately over the accuracy of the figures.
Of course the drop is so small, and so "first time" that I write it off to "statistical noise". But the fact that it is "not increasing" is quite remarkable. I also love watching blogs this morning with people who actually professionally know a lot about the economy and important things like that run around like headless chickens. Priceless, literally.