#CPI+PPIDoubleBeat

About CPI+PPIDoubleBeat

U.S. April inflation beat on both fronts: CPI at 3.8% YoY (vs 3.7% expected), PPI at 6.0% YoY far above the 4.9% forecast, the highest since Dec 2022. Energy is the main driver as the Iran conflict pushes oil costs into upstream PPI pass-through. PPI leads CPI by 1-3 months, signaling continued upside pressure on May-June CPI. The 10Y yield hit its highest since July 2025, and markets have begun pricing in the possibility of a rate hike this year, with cut expectations largely eliminated.