U.S. inflation pressure still broad despite slowdown in April

  • Headline price growth eased in April as gasoline and used car prices edged lower (at extremely elevated levels).
  • Price pressure still broad; more supply chain headwinds from Chinese lockdowns and Ukraine war.
  • Wage growth accelerating, consumers’ inflation expectations continued to rise.






 


See our Canadian Inflation Watch here.

  • March CPI reading pushed higher by invasion led surge in gas prices.
  • Commodity prices have partially reversed gains but growth in rent prices are picking up.
  • Tight labour market conditions means higher wages, especially for non-managerial roles.





  • Still around 80% of the consumer basket (excluding shelter) was growing at above target rate in February.
  • 5-year inflation expectations breach 3% on surging oil prices after Russian invaded Ukraine.
  • Food and energy to lead global inflation as commodity prices soar.






  • The 7.5% year-over-year price growth still disproportionately influenced by vehicle prices and weak year-ago comparable prices, but price pressures are broadening
  • Housing costs running at above pre-pandemic rates, and close to 80% of the consumer basket prices rising faster than 2% per-year from pre-pandemic levels
  • Headline inflation rates are expected to plateau in coming months as pandemic distortions fade, but strong demand will keep a floor under broader price pressures






Download report PDF

Download

  • Near-term inflation driven by higher home rent and vehicle prices.
  • Pressure is still broadening, as majority of consumer basket is seeing +2% growth in inflation.
  • Tentative signs of supply chain disruptions easing.






Download report PDF

Download

  • Inflation pressure still broadening across CPI basket.
  • Omicron worries jolted energy prices and inflation expectations.
  • Used car prices continued to rally, wages also grew.






Download report PDF

Download

  • New vehicle prices and base-effects still boosting year-over-year price growth.
  • Shelter and food costs also rising more quickly.
  • High input costs and supply chain disruptions to keep upward pressure on prices near-term.








Download report PDF

Download

October 13, 2021

  • US core (ex-food & energy) price growth back above pre-COVID trends, supported by reopening demand.
  • Excluding vehicles, month over month increase in prices still stable.
  • Rising energy prices, input costs and wages adding to upside concerns.





Download report PDF

Download

September 14, 2021

  • Vehicle prices easing slightly from exceptionally high levels.
  • Month-over-month price growth slower from spring/summer surge.
  • Stronger services demand, persistent supply-chain pressures, to put a floor under near-term price growth.






Download report PDF

Download

August 10, 2021

  • Transport related prices still elevated but showed early signs of easing
  • Longer run inflation expectations still steady among consumers
  • Wage expectations rising higher for lower skill occupations, as demand rebounds






 
See our Canadian Inflation Watch here.


Download report PDF

Download

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.