Consumer prices rose 3.8% annually in April, the highest since May 2023

Summary

Rick Santelli reports April CPI data showing headline CPI up 0.6% month-over-month and 3.8% year-over-year, both slightly above expectations, with core CPI at 2.8% year-over-year, the highest since September. He notes the CPI index continues to hit new all-time highs, and the 10-year Treasury yield is hovering at 4.4%, potentially vulnerable if yields rise further. The discussion highlights persistent inflation and the importance of monitoring energy-driven pressures.

• April headline CPI rose 0.6% month-over-month, matching expectations.
• Year-over-year headline CPI came in at 3.8%, above the expected 3.7% and the highest since May 2023.
• Core CPI year-over-year was 2.8%, also above expectations and the warmest since September 2021.
• The CPI index (100+ year series) reached another all-time high.
• 10-year Treasury yield near 4.4%, close to the year's high close, with a key auction of $42 billion 10-year notes at 1:00 PM ET.
• Santelli warns yields could hit an air pocket if they move much higher, given energy inflation uncertainties.
• Wage growth and the last mile of sticky inflation remain concerns.
• No direct trade recommendations were provided.