Core Consumer Prices Hit New Record High - Up For 50th Straight Month

Following last month's 'deflationary' print (-0.1% MoM), analysts expected headline CPI to rise 0.2% MoM and they were spot on, shifting the YoY CPI print to 2.9% (from 3.0%) - the lowest since March 2021...

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Source: Bloomberg

Goods deflation continues to drag overall CPI lower...

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Source: Bloomberg

The 3m and 6m annualized CPI rates continue to trend lower (with Energy a particularly volatile factor)....

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Source: Bloomberg

Core CPI also rose 0.2% MoM (as expected), and the YoY rate of inflation slowed to 3.2% (from 3.3%) - the lowest since April 2021...

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Source: Bloomberg

While Core CPI is slowing YoY, the Core goods deflation appears to have stalled...

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Source: Bloomberg

However, that is the 50th straight month of MoM increases in Core CPI, and a record high...

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Source: Bloomberg

Under the hood, used car prices fell 2.3% along with airline fares (-1.2%) while Car insurance costs jumped 1.2% and furniture prices rose 0.3%...

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Source: Bloomberg

Finally, the so-called SuperCore CPI rose 0.2% MoM (same as the rest), dragging the YoY down to 4.73% (still notably elevated)...

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Source: Bloomberg

Transportation Services jumped notably MoM..

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Source: Bloomberg

So, is this 'good' news or bad news?

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