• Prior was 3.4%
• Unrounded +3.738% vs +3.397% prior
• CPI m/m +0.6% vs +0.6 exp
• Prior CPI was +0.4%

Core readings:

• Core y/y 2.6% vs 2.5% expected
• Prior core was 2.4%
• Core unrounded +2.564% y/y vs +2.446% prior
• Core m/m +0.33% vs +0.2 expected
• Prior m/m +0.3%
• Unrounded m/m vs +0.318% prior
• Core goods +0.3% m/m vs +0.11% prior
• Real weekly earnings -0.5% vs +0.2% prior
• Supercore y/y +3.13% vs +3.022% prior

Ahead of the report, the market was pricing in a 21% chance of a rate hike in October and 27 bps in hikes this year. The October number is up to 47% and there are now 36 bps priced in this year. USD/JPY was trading at 158.46 ahead of the report and 158.82 afterwards.

Key sub-components:

• Owners’ equivalent rent: +0.3% vs +0.2% prior
• Rent of primary residence: +0.2% vs +0.2% prior
• Motor vehicle insurance: +0.1% vs -0.8% prior
• Airfares: +1.2% vs +2.7% prior
• Used cars: +0.7% vs +0.4% prior
• Apparel: +0.3% vs 0.0% prior
• Medical care: +0.1% vs -0.2% prior
• Lodging away from home: +2.0% vs +2.4% prior
• Energy m/m: +5.2% vs +2.1% prior
• Gasoline m/m: +9.1% vs +3.9% prior
• Food m/m: 0.0% vs +0.1% prior
• New vehicles: +0.2% vs +0.3% prior

The euro is immediately lower on the report as the US dollar jumps across the board.