Headline CPI in Line as Inflation Remains in Check

The Consumer Price Index tracks the cost of living by measuring the changes in the price paid by consumers for goods and services. CPI is important because it tracks changes in purchasing trends and it shows inflation on the consumer level in the last month. With the economic volatility associated with rising price levels, the Fed often will raise interest rates to check inflation, given a high growth economic environment. On the other hand, low or falling CPI is indicative of declining prices, and may suggest an economic slowdown. Below is a list of today's headline reading compared to analyst estimates:

Since the Fed said they would keep interest rates low until 2014, the lower than expected core CPI figure should calm investors' fears of inflation and with it, the unlikelihood of a surprise rate increase by the Fed. According to the

, The Consumer Price Index for All Urban Consumers was unchanged in April on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.3 percent before seasonal adjustment. The energy index, which had risen in each of the three previous months, declined in April on a seasonally adjusted basis and offset increases in the other major indexes. The gasoline index fell 2.6 percent in April and accounted for most of the decline in energy, though the indexes for natural gas and fuel oil decreased as well. The food index rose in April as five of the six major grocery store food group indexes increased. The index for all items less food and energy rose 0.2 percent in April, the same increase as in March. Increases in the indexes for shelter, used cars and trucks, medical care, airline fares, new vehicles, and apparel all contributed significantly to the April increase. US equity futures saw an initial move higher and the US dollar Index lower after the 8:30 a.m. ET release. Currently, Dow Jones Industrial Index has given back some of its earlier gains, but is trading up about 60 points in the pre-market.