Core inflation remained tame in June, as year-over-year inflation excluding the more volatile food and energy components fell from 2.0% to 1.9%.
Even though the 3-month annualized rate of core inflation dropped from 2.8% in May to 2.5% in June, this figure is still up ¾ - 1 percentage points from readings a year ago. Nonetheless, there are few signs of broad-based wage-led inflation pressures.
On a headline basis (chart below), inflation was unchanged on a year-over-year basis at 2.1%, but rose on a 3-month annualized basis to 3.5%, led by a sharp 3.3% month-on-month increase in gasoline.
Across the consolidated metropolitan areas shown below, annual inflation prints differ fairly dramatically; in the Houston area, annual inflation is running at 3.3%, almost twice the pace of increase in the metro New York area (1.7%).