(source: Bloomberg https://www.bloomberg.com/markets, MSCI https://www.msci.com/end-of-day-data-search and ARG Inc. analysis)

What happened last week?

• On Wednesday the Bureau of Labor Statistics released the latest Consumer Price Index (CPI) data showing that household purchases rose by 4.9% on a year-over-year basis and by 0.4% in April after rising 0.1% in March.  The most recent monthly price increases were led by shelter, used vehicles and gasoline.  Overall, the energy index rose 0.6% for the month, and food prices in the aggregate were unchanged.

• The U.S. Producer Price Index (PPI) rose 0.2% in April after falling 0.4% in March and was unchanged in February.  On an annualized basis producer prices rose 2.3% for the twelve months ending in April.  Year-over-year producer prices have fallen each month over the past year from a high of 11.2% in April 2022.

• China’s consumer prices rose 0.1% in April, after rising 0.7% in March, and its year-over-year inflation rate is 1%.  China’s PPI fell 3.6% compared to April 2022.  China's inflation for consumers and producers are significantly lower than the United States, who has seen 10 consecutive interest rate increases and has brought U.S. CPI down to 4.9%.

Source: BLS CPI Release, BLS PPI Release, China’s inflation

What’s ahead for this week?

• In Canada, new housing price index, housing starts, manufacturing sales, wholesale sales, and retail sales will be reported. 

• In the U.S., a variety of indicators for April showing the health of the economy will be reported, including retail sales, capacity utilization, industrial and manufacturing production, business, and retail inventories, building permits, housing starts, and existing home sales.

• Globally, the Eurozone will announce its first quarter Gross Domestic Product (GDP) and trade balance and its consumer inflation for April and year-over-year.  China is scheduled to release its industrial production, retail sales and unemployment rate for April.  Capacity utilization and industrial production, imports, exports and trade balance, and CPI will be reported by Japan.

Source: Eurozone

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