Core CPI Jumps the Most Since 1991 Yet Little Bond Market Reaction

Economists underestimated year-over-year measures of inflation. The Bond market didn’t.

by Mike ‘Mish’ Shedlock
Mish Talk

The BLS reports CPI for all Items Rises 0.9% in June as many indexes increase.

  • The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9 percent in June on a seasonally adjusted basis after rising 0.6 percent in May.
  • This was the largest 1-month change since June 2008 when the index rose 1.0 percent.
  • The index for used cars and trucks continued to rise sharply, increasing 10.5 percent in June. This increase accounted for more than one-third of the seasonally adjusted all items increase.
  • The food index increased 0.8 percent in June, a larger increase than the 0.4-percent increase reported for May.

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