We continue to expect the Fed to raise its Fed Funds Rate by 75 BPS in early November.
Core inflation was up 0.6% month-to-month (6.6%) for the year. Shelter was the primary driver of Core Inflation as it carried a 32.5% relative weighting and was up 0.7% month-to-month. Food was up 0.8% month-to-month and has yet to cool down as a category. For those who are curious Food carries a 13.6% relative weighting which feels low to us (we are not fans of the CPI as a measure of inflation generally speaking). Energy was the only major category that was was down month-to-month at -2.1%. Energy carried an 8.2% relative weighting (also low in our view). CPI full release HERE.