This time it’s the Dow’s turn to break a milestone. The index broke through 27,000 this morning. Jay Powell testifies again today but this time before the Senate.
This morning’s CPI report said that inflation rose 0.1% in June. Economists were expecting no change.
However, core inflation rose by 0.3%. That’s the biggest monthly increase since January 2018.
The so-called core CPI was boosted by strong increases in the prices for apparel, used cars and trucks, as well as household furnishings.
There were also increases in the cost of healthcare and rents. In the 12 months through June, the core CPI climbed 2.1% after advancing 2.0% in May.
The overall CPI edged up 0.1% last month, held back by cheaper gasoline and food prices. The CPI rose 0.1% in May. It increased 1.6% year-on-year in June after rising 1.8% in May.
Economists polled by Reuters had forecast the CPI unchanged in June and rising 1.6% year-on-year.
The Fed, which has a 2% inflation target, tracks the core personal consumption expenditures (PCE) price index for monetary policy. The core PCE price index increased 1.5 percent year-on-year in May and has undershot its target this year.