*SCALPSWINGSTRADDLE*

[Zephyr]

Consumer Price Index
Released On 7/22/2014 8:30:00 AM For Jun, 2014
Prior Prior Revised Consensus Consensus Range Actual
CPI - M/M change 0.4 % 0.4 % 0.3 % 0.2 % to 0.6 % 0.3 %
CPI - Y/Y change 2.1 % 2.1 %
CPI less food & energy 0.3 % 0.3 % 0.2 % 0.1 % to 0.3 % 0.1 %
CPI less food & energy - Y/Y change 1.9 % 1.9 %
Highlights
Inflation pressures held steady at a noticeable level in June, headlined by a 0.3 percent rise for the consumer price index. Though this is down 1 tenth from May's 0.4 percent jump, the year-on-year rate remains just above the key 2 percent level at 2.1 percent.

But there was an easing in the monthly core reading which excludes food and energy, inching only 0.1 percent higher vs May's outsized 0.3 percent gain. But here too, the year-on-year rate is unchanged, pressing right at the 2 percent level at 1.9 percent.

Gasoline, which often rises in the summer driving season, is the center of pressure in this report, jumping 3.3 percent in the month though the year-on-year rate actually slipped 3 tenths to plus 2.0 percent. Food prices, which had been on the rise, edged only 0.1 percent higher as fruits, dairy and cereals contracted. This drove the year-on-year food rate down 2 tenths to plus 2.3 percent.

Elsewhere, drugs and tobacco show sharp gains as does apparel with an unusually strong gain of 0.5 percent in the month. Otherwise, other readings show no more than incremental pressure.

There's something in this report for everyone at the Federal Reserve, though the year-on-year rates will likely have the hawks continuing to warn that inflation may be closer than it appears.