• The monthly “headline” inflation number and core inflation for the month and year all came in higher than the consensus forecasts.
• Overall U.S. inflation is being held down by declining gasoline prices, but core inflation is running at 2.1%, which is clearly “moderate” inflation.
• The Federal Reserve probably won’t be swayed by these numbers, and will remain on track to begin lowering short-term interest rates this year.

The Consumer Price Index for All Urban Consumers increased 0.1% in June on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, “headline” inflation increased 1.6%.

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