Monthly US consumer price index data
- Prior was +0.6%
- Ex food and energy +0.6% vs +0.2% expected
- CPI +1.0% y/y vs +0.7% expected
- CPI ex food and energy +1.6% vs +1.1% expected
Treasury yields are at the highs of the day on this. US 5-year yields rose to 0.307% from 0.295%.
Prices of used cars were up 2.3% m/m and that was a big driver for price rises. Pawing through the report, the pace of food inflation is getting to be severe. Beef prices are up 14% y/y and even white bread is up 5.6% y/y and carbonated beverages +9.2%.
On the deflationary side, men's suits prices are down 12.8% and women's dresses -23.1% as work-from-home kills demand. Lodging away from home is down 13.4%.
When I look through the report, I can't help but feel that many of the hikes will remain sticky while the cuts will evaporate when we get back to normal. That's going to leave all prices higher and the Fed isn't going to be hiking rates. Stagflation?
