Summary

• While economists expected core CPI to increase 0.3% month-over-month, it came in a tick higher than expected at 0.4% (4.6% annualized).
• The jump in core CPI sent equity futures lower ahead of the open as interest rates rallied.
• Excluding rent, core CPI rose just 1.6% annualized and still looks similar to the pace it has trended at since 2023.

Yesterday was a big day for inflation data as the BLS released April CPI (Consumer Price Index).

We all knew that spiking energy prices from the Iran war would impact headline CPI, but it was