US consumer price inflation jumped 0.9% month-on-month in June after recording a 0.6% gain in May with 0.8% increases in April and 0.6% in March. This was well ahead of the consensus prediction of 0.5% while the core (ex food and energy) also rose 0.9% MoM versus the 0.4% consensus. Given the strong run of MoM readings over the past few months it makes it very difficult for the Federal Reserve to stick to their position that inflation is merely “transitory”. Today’s surprise outcome also supports calls for a swifter removal of the massive monetary stimulus the Fed have injected into the economy There were 0.3% or ... (full story)