U.S. CPI rose 0.1% in June, while the core rose 0.3%, hotter than expected
U.S. CPI rose 0.1% in June, while the core rose 0.3%, hotter than expected. There were no revisions to the 0.1% gains in May. On a 12-month basis, headline prices slowed to a 1.6% y/y pace versus 1.8% y/y, and excluding food and energy, the pace increased to 2.1% y/y versus 2.0% y/y. There was strength in apparel prices whice climbed 1.1% following unchanged. Housing costs rose 0.3% versus the prior 0.1% gain, with medical care up 0.3% too, as it did in May. Services rose 0.2% versus 0.1%. Food/beverage prices edged up 0.1% after a prior 0.3% gain. Energy prices dropped 2.3% versus -0.6%, while transportation costs slid -0.7% from -0.3%. Commodities were down -0.2% from unchanged. The data will pressure Treasury yields higher and could knock stocks lower.