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May 14 - 06:55 PM

Goldman Sachs: With CPI and PPI in Hand, We Estimate that Core PCE Prices Rose 0.30% in April

By eFXdata  —  May 14 - 04:00 PM

Goldman Sachs Research preview the core PCE print for April which is due on May 28.

"With CPI and PPI in hand, we estimate that core PCE prices rose 0.30% in April. Our forecast implies that core PCE prices rose 3.32% year-over-year and headline PCE prices rose 0.45% in April and 3.79% year-over-year.  We estimate that trimmed mean PCE inflation was a softer 0.25% because it removes boosts from the energy price spike, tariffs, and AI mismeasurement," GS notes.

"Core CPI rose 0.38% in April, reflecting a roughly 13bp boost from an extra month’s worth of rent and owners’ equivalent rent inflation to make up for a missing month from the government shutdown last October.  Lodging, airfares, and household operations each contributed 4bp," GS adds.

Source:
Goldman Sachs Research/Market Commentary
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