April CPI Expected to Show 0.4% Rise

The leading piece of economic data due this week will be a measure of April consumer inflation, the U.S. consumer price index.

The CPI is expected to show a rise of 0.4% overall and a gain of 0.2%, excluding food and energy prices. The report is scheduled for release Wednesday. In March, the overall CPI rose 0.3% and the core CPI increased 0.1%.

April retail sales also will be announced, although most U.S. retailers reported April sales Thursday.

A measure of April retail sales is expected to show a gain of 0.7%, compared with a 0.1% rise in March, and the gauge of retail sales excluding autos is forecast to rise 0.4%. This report is due Tuesday.

Some retailers incurred the effect of an early Easter holiday, which fell on the last day of March and reduced purchases.

Other economic data coming this week:

* Wednesday, the Federal Reserve will report on industrial production for April. The report is expected to show a 0.4% increase; manufacturers, such as Whirlpool Corp. and General Motors Corp., are boosting production as factories emerge from a 11/2-year slump.

Also on Wednesday, the Commerce Department will report on business inventories during March.

* Thursday, Commerce will report on housing starts for April.

* Friday, Commerce will report on the nation’s March trade deficit. The deficit in goods and services is expected to have widened to $32.4 billion from $31.5 billion in February, and would be the biggest trade gap since March 2001.

Also, the University of Michigan will issue its closely monitored consumer sentiment index for May.