Inflation data remains high with no sign of it easing yet.

The inflation data from last week did not give any indication it was peaking as many had hoped. The CPI was up 1.3% for the month driving the YOY increase up to 9.1% from 8.6%. The core rate was up 0.7% for the month and is up 5.9% YOY. Much of the increase was due to the spike in oil prices in June. Those prices including gasoline have declined since this reading was taken, creating some hope this was the peak in pricing pressures. However, the other sectors of the report continued to increase at an unacceptably high rate as it takes time for lower commodity prices to be reflected in final demand purchases. The PPI is usually used as an indicator of future final demand pricing pressures. That index increased by 1.1% for the month and is up 11.3% YOY.