ING And Mizuho See Price Stickiness In June's Report

A couple of early reactions to June's CPI reading from ING and Mizuho:

ING: June may mark the peak for headline CPI, but apart from that, the only "crumb of comfort" in the month's numbers was that they "didn’t come in as high as the fake report doing the rounds yesterday suggesting a 10% headline reading."

• And even though price rises may have peaked, "the descent will be slow given the ongoing upward pressure on food prices and the long time it takes for turning points in house price appreciation to feed through into the shelter components of CPI" and there is "still a lot of pent-up demand", especially for leisure/hospitality/tourism.
• They still see a 75bp hike in July, with 50bp moves in Sep and Nov, with 25bp in Dec.

Mizuho: The June inflation report set the stage "for a hawkish July FOMC".

• "Inflation was broad-based and especially notable in the sticky components of inflation. Both the sticky and the flexible components of inflation accelerated. By our estimate sticky inflation increased to its highest level this cycle. There is nothing for the Fed to like in this report, and it will likely lead the market to discount a more hawkish Fed policy outlook."