CHART OF THE DAY: Sticky High Inflation Components

At face value, the CPI report was dovish and came in lower than expectations:

• Headline CPI came in at +3.0% Y/Y, versus +3.3% in the prior month. The number was also down -0.1% M/M, which was the lowest M/M increase since May of 2020; and
• Core CPI came in at +3.3%, versus +3.4% Y/Y previously.

Things were less sanguine under the hood of the report. Core Services Ex-Shelter, which is reputedly a major focus of the Fed, remained high and sticky at +4.9% Y/Y.