Consumer Prices Surge At Fastest Pace Since 2011, Real Wage Growth Slumps

Last night's Singaporean show was the prelude to the rest of the week's real action - central banks - and nothing drives The Fed more than inflation anxiety as exhibited by Core CPI this morning... and it printed hot.

For the 32nd consecutive month, the consensus estimate on the street was +0.2% MoM - and expectations were met - pushing the headline CPI to +2.8% YoY (as expected) - the highest since December 2011...

Core CPI also rose to +2.1% YoY (as expected) - the highest since Jan 2017.

The indexes for new vehicles, education and communication, and tobacco increased in May, while the indexes for household furnishing and operations, and used cars and trucks fell. The indexes for apparel, recreation, and personal care were unchanged.

The medical care index increased 0.2 percent in May, with the index for prescription drugs increasing 1.4 percent, the index for hospital services increasing 0.5 percent, and the index for  physicians’ services increasing 0.1 percent. The new vehicles index increased 0.3 percent in May, while the index for motor vehicle insurance increased 0.4 percent after falling 0.2 percent in April. The indexes for tobacco and for education and communication also increased.

The index for all items less food and energy rose 2.2 percent over the past 12 months, after increasing 2.1 percent in the 12 months ending March and April, and the medical care index rose 2.4 percent. Indexes that declined over the past 12 months include those for new vehicles, airline fares, used cars and trucks, and  communication.

And while rent inflation remained the same, shelter index rose 3.5 percent over the last 12 months...

And while prices are soaring, real wage growth is slumping...

Real average hourly earnings were unchanged YoY - the weakest since Feb 2017.

Over to you Jay!


Baron von Bud Juggernaut x2 Tue, 06/12/2018 - 09:30 Permalink

Govts can always engineer inflation and they will. Have you ever seen deflation anywhere in the world? In a fiat money system it won't happen. We had productivity and gentle deflation under the gold standard. With fiat they print and inflate. When productivity falls the printing becomes inflationary. This will be the story until we die. They'll hold down the price of gold while they can.

In reply to by Juggernaut x2

JGC Tue, 06/12/2018 - 08:45 Permalink

Keep in mind BLS is reported inflation and not actual or experienced inflation. BLS uses hypothetical prices for housing costs. And in 1998 BLS stopped measuring rents from the owner market. The main reason that the Phillips curve appears to be flat is that the price measurement of today is not comparable to that of 1960s, 1970 and 1980s. If house price inflation is not a sign of inflation what is it?  


ll951983 GunnerySgtHartman Tue, 06/12/2018 - 09:38 Permalink


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In reply to by GunnerySgtHartman

ravolla ll951983 Tue, 06/12/2018 - 09:40 Permalink

Good to see my man Wadalt and our newbies  ll951983  and  gzcekkyret back out from under the couch with  Hot Pockets and back on the threads SPAMMING like a Grease Fire!!!! 

Biblicism = TodaysFox ("I made $7000 sucking cock on the Internet")  SAME SPAMMER!

R.I.P.   "Mr Hankey" who has joined "The Fallen Spammers" -- banned for pathological over the top whackism.

THIS is an important week here in the SPAMMER's BUNKHOUSE.  You see, there are dozens of "personalities" living in this one single sad SPAMMER's sick little mind, which he calls "Spammer's Bunkhouse."  How sick is that?

This week I (we?) are celebrating SEVEN YEARS here on ZH, obsessively SPAMMING every thread we can with off-topic comments.

SAD BUT TRUE!!  I (we?) have wasted my (our) youth (or at least the last seven years) with at least one hand in my pants and the other hand SPAMMING ZH.  Yes, indeed.  DOZENS and DOZENS (maybe hundreds) of log-on's banned -- 
>>  "I made $7500 last week on the Internet sucking cock!": that's me.
>>  Biblicism: that's me.
>>  All the porn at Celebrity-leaks: that's me.
>>  Daily Westerner: that's me.

>>  "In the news....SPAMMER broomsticked by furious readers" -- registered in Nigeria) :: that's me TOO!! 

That's our life (all of us living in Master Spammer's Mind): mopping the floor at the Porn Cinema at 2am, working the drive-thru window at SONIC, sucking cock on the Internet, and spamming ZH with an enormous Excel spreadsheet of the log-on's of dozens of "digital friends" who upvote one another and virtually suck my little micro penis..

MEET my current imaginary friends.  We all live in one SPAMMER's HEAD but as for me, I have gone off the reservation.  These other "personalities" are pretty troubled.

ll951983  <<< NEWBIE  sucks cock on the Internet!
  <<<  NEWBIE
Cheoll   <<<  NEWBIE

Mr Hankey    <<<  total utter WHACK JOB  -- joined "The Fallen"
gzcekkyret     <<<  NEWBIE

You know SPAMMERS never die on ZH -- here's just a sampling of the banned log-on's ("The Fallen Spammers") ---

 beepbop, pier, lloll, loebster, ergatz, armada, Mtnrunnr, Anonymous, luky luke, Cjgipper, winged, moimeme, macki mack, tchubby, sincerely_yours, HillaryOdor, winged, lexxus, kavlar, lhomme, letsit, tazs, techies-r-us, stizazz, lock-stock, beauticelli, Mano-A-Mano, mofio, santafe, Aristotle of Greece, Gargoyle, bleu, oops, lance-a-lot, Loftie, toro, Yippee Kiyay, lonnng, Nekoti, SumTing Wong, King Tut, Adullam, evoila, rp2016, alt right dude, altright-girl, alt-right girl, Blufin, Schlomo Scheklestein, BraveForce, Mr Hankey

In reply to by ll951983

dizzyfingers NoWayJose Tue, 06/12/2018 - 14:53 Permalink

TIA in the News


Social Security projections: When current law is contrary to current law

Includes “… Future participants are damned, it appears. The $15+ trillion negative position in Social Security last year arrived despite an $18 trillion positive contribution from future participants! Essentially, this means future participants face a huge negative return, under current law, while they support the rest of us. An important qualifier, however, is that these Social Security projections depend on current law— whatever that means. …”

In reply to by NoWayJose

orangedrinkandchips Tue, 06/12/2018 - 08:52 Permalink

i have always cracked up with these psycho central bankers-

INFLATION IS NOT GROWTH! charging more for the same good/service isn't selling more or making more money, just an increase in price!


Inflation is nobody's friend, imho

The Real Tony Tue, 06/12/2018 - 08:55 Permalink

Canada doesn't even consider rent inflation in the CPI index which is north of 15 percent year over year in two-thirds of the country and two-thirds of the population.

buzzsaw99 Tue, 06/12/2018 - 09:06 Permalink

this is bullshit.  the only reason they are reporting higher inflation is so the fed can justify hiking the ioer rate they pay the effing bank maggots.

KarlGDenninger Tue, 06/12/2018 - 09:10 Permalink

8 years and no rate hikes under O.



They are going to blow up the economy. The environment was just as inflationary as it is now


I dont think trump will go down without a fight. He may name them and attack them in public. Which might be a good thing

dizzyfingers KarlGDenninger Tue, 06/12/2018 - 14:55 Permalink


How do I tax thee?

Review of new book of same name, includes “Subtitled 'A field guide to the Great American Rip-Off' by Kristin Tate the book serves as a primer on various ways governments raise money for their own benefit with several examples hitting home. No matter which party is in control, or who’s writing the federal, state, and city budgets – governments at every level continue to operate with minimal transparency and abysmal transparency. …”

In reply to by KarlGDenninger

notfeelinthebern Tue, 06/12/2018 - 09:17 Permalink

The index for medical care increased 2.4 %. What else is new? Meanwhile nephews Minneapolis home, that he purchase for 210,000.00 in '09, just sold for 365,000.00. Insane!

rejected Tue, 06/12/2018 - 09:19 Permalink

Federal Budget, (on the books), this year is about 4 trillion.

Budget deficit, (on the books), this year is about 1 trillion.

The FRB will cover most of this through their off shore proxies and other CB's.

The increase in money (inflation) is about 25%.

Of course they call it loans and say deficits don't matter.

Just to make sure you don't get any wrong ideas and like many other definitions, the definition of inflation has been changed to price increases which is in reality a symptom of inflation. The old definition was an increase in money supply and it really doesn't matter whether it's currency or debt.

It's all lies folks but were learning how to live with lies.

It's not a problem until it is a problem.

dizzyfingers rejected Tue, 06/12/2018 - 15:01 Permalink

American Association of Retired Persons (AARP)
Federal insurance for multiemployer pensions in peril
By Patrick Kiger, includes “The federal Pension Benefit Guaranty Corporation's Multiemployer Insurance Program, which protects the retirement benefits of 10 million Americans, is under "severe stress" and has an estimated 90 percent likelihood of becoming insolvent by 2025 … If the program doesn't collapse in 2025, it is 99 percent certain to fail the following year, the report said.” 

In reply to by rejected

Ink Pusher Tue, 06/12/2018 - 09:38 Permalink

Wage Growth?

A workforce MUST be working to get a "Wage".


Killing any fabricated nonsense about "wage growth".

Cost of Living?

So insanely high that it won't even be brought up for discussion.

Population Growth?

Off the charts and wholly unsustainable.



MusicIsYou Tue, 06/12/2018 - 09:56 Permalink

No! There has not been "real" wage growth in 20 years, well except for the mega rich. And the reason business management is always leaning on employees to get a promotion is because if you stay in the same job position then you will surely notice there has been no real wage growth. Yeah because when people get a promotion it clouds the fact there has not actually been wage growth. Getting more money on the hour is not wage growth - that's a promotion. (wage growth means "the Power" of your current wage is growing). Wage growth is the money that you already have carrying you further, and that's not going to happen because you're getting robbed.

Tamam Shud Tue, 06/12/2018 - 10:06 Permalink

I live in a landlocked area.  Housing prices have typically been more static than elsewhere in the nation.  However, even here in flyover country, housing is hot.  There are new subdivisions going in all over the place.  Cookie-cutter starter homes on up to nice second homes.  Beautiful fields are being ripped up and turned into suburbia.  People are buying used houses before they're even listed publicly.

Nov1917Sucks Tue, 06/12/2018 - 11:31 Permalink

Remember when ZH was a fun spot to come and watch it expose the lies and BS of the FED "and" the Obama administration. Now with Trump we get this adoring BS followed by the current article and the truth 2 hours later.


Small Business Euphoric About Trump As Optimism Soars To 34 Year High

"Small business owners are continuing an 18-month streak of unprecedented optimism which is leading to more hiring and "raising wages".


Its almost like this site is in Eastern Europe and funded by Trumps enablers somewhere over there!

RocketScience Tue, 06/12/2018 - 12:10 Permalink

Of course CPI is going up. What do you think raising interest rates does?

Raising interest rates raises the cost of money which raises the cost of everything. This shows up as an increase in CPI.

Eventually, raising interest rates crushes the economy which causes a recession that reduces CPI. 

How is it that folks do not understand this?