US DATA: Jun CPI -0.2%, but core a higher than expected +0.3% (a mere,
lower +0.2545% unrounded) for +3.6% YOY overall and +1.6% YOY core. The
last time there were back-to-back 0.3s in core was Jun-Jul 2008 before
the economy slowed. In core, apparel +1.4% in 2nd large gain and new
vehicles +0.6%, used cars +1.6% (biggest gain since Dec’09) and tobacco
+0.4%. Food was +0.2% as cereals and dairy rose but meats and fruits
fell. Energy was -4.4% (largest drop since Dec’08) as all areas fell
except nat gas at +0.4%; drop was led by -6.8% gas (-5.8% NSA in Jun but
still +35.6% YOY). OER +0.2%. Bottom line is that CPI shows some price
gains in core that appear to be sticking.