Headline vs. core. 
Welcome to the Know the Difference Minute for Wednesday, April 12th.
CPI day. And a highly anticipated one at that. There’s the headline number, and then there’s the core inflation number. 
Headline number shows US consumer prices rose only slightly in March due to lower energy costs, but broader inflation remained high and showed no signs of quickly subsiding.
Here’s where the core number comes in. The core rate omits food and energy and rose sharply.  That suggests inflation will remain elevated. The Fed views the core rate as a more accurate predictor of inflation trends. It’s a key factor when determining rate hikes.  
Groceries, rents, and home prices are easing. Service prices are not. Labor cost is a concern for the Fed. There’s now about a 68% chance of a quarter point rate hike in May, down from about 73% pre-data.
I’m Dave Spano from Annex Wealth Management.  That is your Know the Difference Minute.