Consumer Prices rose less than expected MoM (+0.1% vs +0.2% exp), but on a year-over-year basis, CPI surged 2.9% – the most since Dec 2011.
The indexes for rent and owners’ equivalent rent both rose 0.3 percent, but the index for lodging away from home fell 3.7 percent in June after rising 2.9 percent in May.
The disappointing MoM print within the CPI report also showed hotel and motel rates fell 4.1 percent in June from the previous month, the biggest decline on record and dragging down the broader index by 0.037 percentage point.
Other gauges of housing costs continued steady gains, with rent of primary residence and owners-equivalent rent both rising 0.3 percent.
Looking further under the hood, Energy Services and Apparel prices dropped MoM, while Fuel Oil prices jumped most MoM.
Finally, we note that today’s CPI really puts the entire Treasury market complex into perspective; it’s extraordinarily rare to get a negative real yield (on a spot basis) on the long bond, but we’re getting awfully close.
via RSS https://ift.tt/2urK6no Tyler Durden