Supercore inflation CPI jumped AGAIN in April to 4.9%, the highest in 12 months.
Core services less housing inflation is a key metric followed by the Fed, also known as Supercore inflation.
Last month's surge has been largely due to a 22.6% spike in auto insurance, contributing… pic.twitter.com/DYzVtPL3AD
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Americans are kicking the can down the road on some more-costly, traditionally financed purchases as elevated inflation and interest rates bite.
Corporate executives this earnings season have lamented that customers are disinterested in shelling out on big-ticket items for their bedrooms, backyards and everywhere in between. It comes at a pivotal moment for the national economy: the average Joe has been contending with a double-whammy of high prices and borrowing costs, while economists and policymakers are trying to gauge the impact this has made.
This matters because it adds to a growing picture of consumer spending finally slowing down, as experts long anticipated. That means the Federal Reserve may get the sign it’s been waiting for that interest rate hikes have had their intended effects of tightening the economy, which could be good news for investors and consumers.
“The consumer’s purchasing power is limited,” Sleep Number
CEO Shelly Ibach told analysts late last month. “As a result, consumers continue to scrutinize their spending and make near-term decisions based primarily on need, price and perceived value. And they are deferring higher-ticket, durable purchases.”