Core CPI Rises At Slowest Pace In 14 Months As Food Costs Jump
Consumer Price Inflation rose a mere 0.1% MoM in July, its equal lowest since November 2013 and in line with expectations as falling energy and transportation costs (both -0.3% MoM) led the stabilization (with a 5.9% plunge in airfares). The biggest drop was in personal computers (-1% MoM) which is now -6.0% year-over-year. Food prices rose 0.4% MoM. Ex-food-and-energy, prices also rose 0.1%, missing the 0.2% expectations, to the slowest pace of core inflation since April 2013. So much for all that inflation is about to break out and tear bond yields higher chatter... (no matter how real or unreal the government's hedonically-manipulated data is).
The 2-month change in Core CPI swung from hottest in 7 years to coldest in 14 months...
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