Consumer prices dipped MoM 0.1% in March (the biggest drop in a year)…

But as the distortions of the “Verizon effect” fade from the numbers, annualized CPI YoY rose to 2.4% – the highest since Feb 2017.

As UBS notes, today’s CPI was effected by the ‘Verizon effect’, which was a statistical adjustment which lowered CPI without any prices actually falling. It is one reason the Fed does not focus on CPI. However, CPI is still the favored inflation measure of financial markets.

Additionally, Shelter Inflation jumped from 3.1% to 3.3%…

How does this translate into inflation pressure at the micro level? The following heat map shows where inflation is “hottest” by corporate sector.