Headline Inflation Cools but Stubborn Price Pressures Persist

Barry Adams
12 Apr, 2023
New York City

Benchmark indexes traded in a tight range after the consumer price index declined more than expected. 

Consumer price index fell to 5.0% but the core rate of inflation increased, matching the expectations set by many economists. 

The inflation index declined for the ninth month in a row but despite the cooling of inflation, prices are still growing at a faster pace than preferred by the Federal Reserve. 

 

Consumer price Inflation Index Dropped In March 

Consumer price index declined to an annual rate of 5% in March, according to the latest report released by the U.S. Bureau of Labor Statistics. 

The March inflation on an annual basis was the smallest increase since May 2021 and the monthly rate of inflation fell to 0.1% from 0.4% in February. 

Sharp decline in gasoline prices slowed the headline inflation but core inflation accelerated in the month to 5.6% from a year ago and rose 0.4% from the previous month on higher shelter costs. 

Core rate of inflation increased for the first time in six months on the sustained increase in shelter prices. 

 

U.S. Indexes & Yields 

The S&P 500 index increased 0.2% to 4,115.49 and the Nasdaq Composite index eased 1.55 points to 12,028.12. 

The yield on 2-year Treasury notes decreased to 4.01%, 10-year Treasury yield edged lower to 3.43% and 30-year Treasury bonds traded unchanged to 3.66%. 

Crude oil increased 99 cents to $82.54 a barrel and natural gas inched lower 7 cents to $2.10 a thermal unit. 

 

U.S. Stock Movers 

Triton International Limited increased 32% to $83.05 after the company agreed to be acquired by a subsidiary of Brookfield Infrastructure. 

The container leasing company agreed to a total consideration of $85.0 per common share, consisting of $68.50 in cash and $16.50 in BIPC class A share. 

The deal values the company at $4.7 billion equity and for an enterprise valuation, which includes its total debt, of $13.3 billion.