Shelter costs, which are seen as a more structural component of the CPI and make up a third of the overall index, rose 0.5% last month, the most since October 2005. The gain was driven by a 7.9% jump in hotel stays.
Wage growth rose steadily through the second quarter, but higher consumer prices are taking a toll. Inflation-adjusted average hourly earnings fell 1.7% in June after slumping 2.9% a month earlier, separate data showed Thursday.
Figures out Tuesday from the National Federation of Independent Business showed 47% of small-business owners, the largest share since 1981, reported higher selling prices in June.
The jump in used car prices is a direct result of the semi-conductor shortage. The kinds of chips required by the automotive sector could be in short supply until the end of the year, so that supply inelasticity is likely to last a while longer. It is also having a knock-on effect for the rental car market and even into the U-Haul sector.Click HERE to subscribe to Fuller Treacy Money Back to top