The Bureau of Labor Statistics reported a further acceleration in inflation on Tuesday, highlighting the continued upside pressure from elevated oil prices.

Headline CPI increased an in-line 0.6% m/m on a seasonally adjusted basis in April, following a 0.9% rise previously. In the 12 months through April, CPI rose 3.8%, a tenth above forecasts and half a percentage point higher than in March.

As expected, energy prices were the primary driver of the increase. The BLS said the energy index rose 3.8% m/m, accounting for more than 40% of the monthly increase in the all-items index. Shelter rose 0.6%, while food prices increased 0.5% over the month.

Core CPI, which excludes food and energy, rose 0.4% m/m, double March’s pace and a tenth above estimates. The annual core rate accelerated two tenths to 2.8%, also ahead of expectations. Household furnishings and operations, airline fares, personal care, apparel and education all contributed to the increase. New vehicles, communication and medical care were among the categories that partially offset the rise. (LiveSquawk – Continue Reading)

The Senate confirmed Kevin Warsh’s nomination to the Federal Reserve Board of Governors Tuesday, with the chamber expected to confirm him separately as chair later this week.

The 51-45 Senate vote Tuesday grants Warsh a 14—year term on the central bank’s board. The Senate then cleared a procedural hurdle to pave the way for a vote on Warsh’s confirmation to succeed Jerome Powell as chairman.

The confirmation vote on the chairmanship is likely to occur Wednesday. The chair’s term runs for four years. (Bloomberg – Continue Reading)

Saudi Arabia launched numerous, unpublicized strikes on Iran in retaliation for attacks carried out in the kingdom during the Middle East war, two Western officials briefed on the matter and two Iranian officials said.

The Saudi attacks, not previously reported, mark the first time that the kingdom is known to have directly carried out military action on Iranian soil and show it is becoming much bolder in defending itself against its main regional rival. (Reuters – Continue Reading)

The Golden Dome missile-defence system would cost USD1.2 trillion to build out, far more than the White House has budgeted, according to a new estimate by Congressional researchers.

The figure is roughly double the Congressional Budget Office’s initial assessment of Golden Dome, based on the expansive yet vague executive order issued in the busy first week of the second Trump administration. It’s nearly seven times larger than President Trump’s original promise to build it for USD175 billion.

And it’s fifteen times larger than the USD79 billion the administration plans to spend in the Golden Dome for America account over the next five years, which excludes other-related missile defence funding. (Defense One – Continue Reading)

Both Iraq and Pakistan have cut deals with Iran to ship oil and liquefied natural gas from the Gulf, according to five sources with knowledge of the matter, in a demonstration of Tehran's ability to control energy flows through the Strait of Hormuz.

The U.S.-Israeli war with Iran has slashed energy exports from a region that normally supplies 20% of the world's crude oil and LNG. The U.S. has blockaded Iranian ports in recent weeks. And though Iran initially sought to halt traffic through the strait, that stance is now changing, said Claudio Steuer of the Oxford Institute for Energy Studies. (Reuters – Continue Reading)