CPI Data Shows Inflation Going Higher

CPI (MoM) came in at +0.4%. This was hotter than the +0.3% expected. Core CPI (MoM) came in at +0.3%, in line with expectations of +0.3%. The culprit was not energy that drove the headline number higher at +0.4%, but instead pressure on food, likely from tariffs.

CPI year over year came in at 2.9%, up from the previous month as well. Inflation is inching higher while the labor market is weakening. This is the definition of stagflation.