Here Is The Heatmap From Today’s Red Hot CPI Report
After the “eye-popping” April CPI report, expectations were for another big increase in consumer prices in May and boy, did the data not disappoint with core CPI surging another 0.7% (0.74% unrounded), which boosted the % yoy rate to 3.8% (3.80% unrounded) from 3.0% previously. This was the highest % yoy rate since 1992.
One big similarity with April was continued outsized strength in used cars inflation, which rose another 7.3% mom in May. Used car prices are now up 16.6% year-to-date (ytd) and according to the Mannheim Used Car Index which is up 26% YTD and 48% Y/Y, it’s set to keep rising.
Also, for the first