June inflation numbers topped estimates (again) with prices increasing 5.4% vs. the year prior. Estimates were for a 4.9% increase. Under the hood, used car and truck prices increased 10.5% and were attributable to a third of the overall increase, while only accounting for 3% of the items in the CPI. Other notable increases were in lodging and hotel rooms, as well as airfares, which increased 2.7% after a 7.0% earlier increase.
Retail sales unexpectedly increased in June, rising 0.6% versus May, compared to expectations of a 0.3% decline. While sales fell in furniture and business materials, which corresponded to the drop in housing, clothing, department stores, and restaurant spending increased 2.6%, 5.9%, and 2.3%, respectively.
Consumer sentiment took a dive, falling to 80.8, from 85.5, and versus expectations of an increase to 86.5. The survey fell from a drop in both current and future expectations as inflation worries started to take hold with respondent’s inflation expectations rising.