It turned Medical Services CPI negative, pushed down core services CPI, core CPI, and overall CPI. But it will swing the other way in October.
Inflation is just going to stick around for a while, it seems.
“The drivers of inflation are changing…. Domestic price pressures, including from rising wages and robust profit margins,” are increasingly important: ECB
Housing, finance, insurance, recreation, other services jumped in June from May. Energy plunged 28% year-over-year, but also jumped in June from May.
Inflation in goods has abated, but it remains hot in services: US companies.
All eyes are now on underlying inflation. Forget the collapsing energy prices that pushed down overall CPI.
We already know the factors that will make this much tougher going forward.
Month-to-month, durable goods prices rose again, on price spike of motor vehicles, after steep drops; services might be cooling a little. Energy plunged.
BOJ’s Ueda promises to fuel inflation further, hopes for wage growth. Strategy: let raging inflation bring Japan’s debt-to-GDP ratio back in line.
Bond yields jump as they begin to price in more BOE rate hikes, and higher for longer than previously imagined.