US March CPI 8.5% y/y vs 8.4% expected

The White House warned ahead of this report that it expects inflation to be 'extraordinarily elevated'. Let's look at the numbers: Prior was 7.9% y/y m/m reading 1.2% vs 1.2% expected and 0.8% priorFull report Core CPI: y/y 6.5% vs 6.6% expected and 6.4% prior m/m 0.3% vs 0.5% expected and 0.5% prior Details: CPI energy +11.0% Gasoline +18.3% New vehicles +0.2%Used vehicles -3.8% m/m Owners' equivalent rent +0.4% Real earnings -1.1% vs -0.4% prior I think the conversation will start to change on inflation when the month-over-months numbers begin to flatten out. For April (as it stands), there will be large negative pressure from gasoline prices if oil stays near $100. The fall in used vehicle prices will also be a drag on inflation for the foreseeable future. That said, with the lockdowns in China we could be on the cusp of a new round of supply chain shortages.