For the 4th month in a row, CPI missed expectations (unchanged MoM vs expectations of a modest 0.1% rise).

Across the board consumer price rises disappointed economists’ guesses with Core CPI tumbling to just 1.7% YoY – the lowest since Jan 2015…

Energy prices fell 1.6% MoM and were the biggest drag on CPI; Apparel and Transportation (airfares) also fell MoM.

The last time CPI followed this trajectory, Bernanke unleashed QE-infinity…

But this time The Fed is hiking rates.

Just remember, according to Janet Yellen this is all ‘transitory’ and due to unlimited phone plans.

Then again, there were some silver linings for those who still believe core inflation weakness is transitory, to wit: 

To some at the Fed, this might support their ongoing view that transitory factors have dampened inflation this year. Then again, coupled with yet another poor retail sales report, one needs a really strong microscope to find the silver lining in today’s data.