1. Headline inflation for March jumped, in line with consensus, driven by a surge in energy prices. Core inflation eased and was a touch lower than expected.

• Here is a breakdown of year-over-year inflation by component.

• Gasoline prices posted their largest jump on record.

• Supercore inflation decelerated month over month.

• Core goods prices rose modestly in March, as an increase in apparel was partly offset by declines in prescription drug and used auto prices.

– Core services inflation slowed, held down by recreation, medical care, and legal services.

– Shelter inflation also reaccelerated.

2. Factory orders stagnated in February, beating expectations for a slight decline.

• The headline weakness, however, was driven by the volatile transportation sector. Excluding transportation, orders jumped 1.2% month over month.

– In level terms, factory orders excluding transportation have shown solid upward momentum.

• Growth in core capital goods orders was revised up by 10 bps to 0.7%.

3. The University of Michigan consumer sentiment index plummeted to an all-time low of 47.6, well below the consensus, reflecting consumer concerns over supply disruptions and rising gasoline prices.