Dow Jones Muted as CPI Inflation Volleys to 3-Year High

The Dow Jones (DJIA) is set to open Tuesday flat following an inflation update from the Bureau of Labor Statistics (BLS).

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In April, the Consumer Price Index (CPI) increased by 0.6% month-over-month, in line with the consensus analyst estimate. On an annual basis, CPI rose 3.8%, above the estimate of 3.7% and registering the highest rate since 2023.

Oil Spike Lifts CPI as Core Inflation Exceeds Expectations

As expected, the spike in inflation was largely driven by higher oil and gas prices resulting from the closure of the Strait of Hormuz. During the month, the energy index notched a 3.8% gain and accounted for 40% of the monthly rise in CPI. Shelter and food also contributed to the uptick, rising by 0.6% and 0.5%, respectively.

Core CPI, which excludes volatile food and energy prices, also came in hot. It rose by 0.4% month-over-month and 2.8% year-over-year. Analysts were expecting 0.3% and 2.7%, respectively.