Inflation data is coming in above expectations but is thought to be temporary.

The last of the April data was released last week. It was uniformly weaker than the very strong March data. The housing sector slowed from the torrid pace of the first three months of the year. Durable goods orders were lower by the same level as the gain reported for March. The most important of the data was the personal income, spending and inflation data. Incomes declined after the huge surge reported for March, and the decline from that peak was less than expected. Consumption spending did increase as consumers moved from goods to service sector spending. This reflects the opening of more service sector operations. The more important data was the inflation component of the report.