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Broadening Core Inflation Pressures

US DATA
  • In a month when shelter inflation took off even more, core CPI ex shelter and used cars was back at cycle highs of 0.70% M/M, similar to overall core CPI of 0.70% M/M.
  • That adds to evidence of broadening of inflationary pressures from median CPI metric beforehand, especially considering airfares also finally fell -1.8% M/M.
  • Some other upside surprise came from apparel accelerating to +0.79% M/M after +0.67% M/M after some analysts had expected a decline with markdowns on excess inventory.

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