Curious CPI: +0.2% overall, +0.1% core
But here's where things get curioser and curioser. The CPI figures included a 0.7% drop in the cost of transportation, driven by -- you'll love this -- a "2.0 percent decrease in the index for gasoline." Is there anybody in their right mind who believes gasoline prices are going DOWN? And it gets better. Quoting from the release: "The index for public transportation declined 0.4 percent in April, reflecting a 0.5 percent decrease in the index for airline fares." Is it just me, or haven't we been reading about multiple fare hikes in the past few weeks?
I can understand some of the other decreases, such as the drops in recreation prices, and automobile and lodging costs. They are likely coming down due to the weak economy. But this energy and airfare stuff is just plain hokey. Regardless of what I think, the bond market likes the news for now -- 10-year yields were up to 3.97% before the report. They're down to roughly 3.92% as of this writing.