Interesting Inflation

While June annual inflation as measured by core CPI was 4.5%, the highest rate in decades, Treasuries were unmoved. Price increases for used cars and trucks singlehandedly drove one-third of the index rise. More generally, 90% of the items in the basket were up 2% Y-o-Y, while 10% of the items were up 20% Y-o-Y including autos, airlines, movies, and hotels. Compared to 6/19, prices are up just 3%.