After producer prices disappointed modestly yesterday, prompting treasury yields to tumble, all eyes are on consumer prices today as it met expectations rising by 2.9% YoY – the fastest rate of increase since Dec 2011 – thanks to soaring rent/shelter costs.

CPI highest since 2011…

Under the covers, one of the bigger drivers was a surge in shelter costs…

Shelter inflation rose 3.5% YoY and Rent Inflation rose 3.6% YoY.

Just a good thing wages are rising… oh wait!!