U.S. Core CPI Surges Beyond Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7 hours ago
0mins
Source: seekingalpha
- Core CPI Increase: The U.S. Core Consumer Price Index (CPI) rose 0.4% month-over-month in April, accelerating from March's 0.2% increase and exceeding the 0.3% consensus, indicating persistent inflation that may influence the Fed's rate decisions.
- Year-over-Year Data: The April Core CPI increased 2.8% year-over-year, surpassing the 2.7% consensus and March's 2.6%, suggesting inflation is moving away from the Fed's 2.0% target, raising the likelihood of interest rate hikes.
- Energy Price Impact: The overall CPI rose 0.6% month-over-month in April, driven by a 3.8% increase in energy prices, with gasoline and fuel oil surging 5.4% and 5.8% respectively, putting pressure on household budgets and potentially affecting consumer confidence.
- Market Reaction: Following the hotter-than-expected inflation data, traders have increased the odds of a 25-basis-point rate hike by the Fed by year-end, with the probability rising from 21.5% to 25.4%, reflecting market concerns over future monetary policy.
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Analyst Views on F
Wall Street analysts forecast F stock price to rise
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 12.050
Low
11.00
Averages
13.65
High
16.00
Current: 12.050
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services, including BlueCruise (ADAS) and security. The Company's segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Year-over-Year Data: The April Core CPI increased 2.8% year-over-year, surpassing the 2.7% consensus and March's 2.6%, suggesting inflation is moving away from the Fed's 2.0% target, raising the likelihood of interest rate hikes.
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- Ford's Counter Strategy: Ford is set to launch the China-built Transit City compact van in Europe to directly counter the new Chinese entrants, priced at £29,000, making it more competitive compared to Ford's E-Transit Custom, which retails at £45,510.
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- Core CPI Increase: The U.S. Core Consumer Price Index (CPI) rose 0.4% month-over-month in April, accelerating from March's 0.2% increase and exceeding the 0.3% consensus, indicating persistent inflation that may influence the Fed's rate decisions.
- Year-over-Year Data: The April Core CPI increased 2.8% year-over-year, surpassing the 2.7% consensus and March's 2.6%, suggesting inflation is moving away from the Fed's 2.0% target, raising the likelihood of interest rate hikes.
- Energy Price Impact: The overall CPI rose 0.6% month-over-month in April, driven by a 3.8% increase in energy prices, with gasoline and fuel oil surging 5.4% and 5.8% respectively, putting pressure on household budgets and potentially affecting consumer confidence.
- Market Reaction: Following the hotter-than-expected inflation data, traders have increased the odds of a 25-basis-point rate hike by the Fed by year-end, with the probability rising from 21.5% to 25.4%, reflecting market concerns over future monetary policy.
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