US CPI data highlights:
- Prior was +0.4% m/m
- CPI ex food and energy +0.2% vs +0.2% m/m exp
- CPI +1.0% y/y vs +1.1% exp
- CPI ex food and energy +2.2% y/y vs +2.2% exp
- Prior ex food and energy +2.1% y/y
One notable comment from Yellen in the press conference yesterday was that she expected core inflation to rise to 2% in 2-3 years. That's measuring with the PCE index, which has diverged from CPI. Either way, that's a long timeline for hitting the Fed target.