Core CPI Slows As Soaring Used Car & Rent Costs Decelerate
After soaring at the fastest pace since 2008, economists expected the surge in Consumer Prices to slow very modestly in July (from +5.4% YoY to +5.3% YoY). They were wrong as CPI came in slightly hot at 5.4% YoY (up 0.5% MoM).
That remains the highest since 2008…
Under the hood, energy costs increased the most along with new cars.
Rent and Used Car cost appreciation slowed…
Shelter inflation jumped to 2.83% Y/Y from 2.58% in June but rent inflation dipped from 1.92% to 1.91% in July
Used Car prices moved higher but barely…
Which helped drive Core CPI of its highs, suggesting the surge may have peaked for now…
Finally, we note that 10Y yields have moved at least 5bps on each of the last three CPI days (but none has seen a run up into the print like the last few days).
Wed, 08/11/2021 – 08:40
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