This is not a "cold" report folks....

The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in May on a seasonally adjusted basis, after rising 0.3 percent in April, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.3 percent before seasonal adjustment.

The unchanged was caused by a decrease in gasoline, mostly, which everyone has seen in advance.

But the index in rents and owners equivalent rent were both up 0.4% which would annualize to 4.9%, or 2.5x the Fed's "target" in these very large and unavoidable consumer expense.  Further, medical care (another mandatory expense for most) was up even more, up 0.5% on the month and what's worse is that prescription drugs were up 2.1% on the month which would annualize to more than 20%.

While the futures immediately spiked higher on the release if you think we're getting imminent rate cuts IMHO you're going to be dead wrong and what's much worse is that the immediate spike downward in the IRX/TNX ratio (more-deeply into negative territory) continues a now record long trend of said inversion.

The longer the markets continue to believe in that which there is in fact no evidence for, simply because at every turn rates have continued to inflate bubbles for the last 20 years along with the fiscal insanity in our government since 2020 the worse the eventual outcome when recognition shows up in said markets will be.