re: core cpi 0.3 depends where Depends where the inflation...

re: core cpi 0.3 depends where Depends where the inflation is...after reading through some of the numbers I think it looks pretty good..

All that has really risen in terms of prices is the cost to rent a home, and that is because the cost to buy a home is now too high....from either increasing rates or house price rises....so in a way it begs for a pause...

http://www.marketwatch.com/news/story/Story.aspx?guid=%7B0CC3A975%2DEA5A%2D4EDD%2D8180%2D1CA4F966184D%7D&siteid=

WASHINGTON (MarketWatch) -U.S. consumer prices increased a moderate 0.2% in June, the smallest gain in four months, but core inflation rose 0.3% for the fourth straight month, putting pressure on the Federal Reserve to raise interest rates again.
The Labor Department said the consumer price index increased 0.2% in June after rising 0.4% in May. Energy prices fell 0.9%, while food prices rose 0.3%.
The CPI increased at a 5.1% annual rate in the second quarter and is up 4.3% in the past 12 months, matching the biggest gain since last October. The core CPI increased at a 3.6% annual rate in the second quarter and is up 2.6% in the past year, a bit more than the Fed would like. It's the fastest increase in core inflation since December 2001.
The major factor driving higher inflation was the cost of shelter, which represents more than 30% of the CPI. Residential rents rose 0.4%, while owners' equivalent rent also increased 0.4%.
Economists were expecting 0.2% gains in both the headline CPI and the core CPI, which excludes food and energy costs, according to a survey conducted by MarketWatch.
The Fed has said the recent increases in inflation have been unwelcome and has signaled it may raise interest rates for an 18th time next month to keep inflation contained. Most analysts expect the Fed to boost the overnight lending rate by a quarter percentage point to 5.50% on Aug. 8.
Federal Reserve Chairman Ben Bernanke will testify later Wednesday on Capitol Hill about the Fed's outlook for inflation and growth.
The rise in the core CPI presents a dilemma for the Fed, because the increase in inflation is largely due to the unwinding of the housing boom, and not to underlying inflationary pressures.
Rents are going up in part because buying a house has become more unaffordable, thus increasing demand for rental properties. But because of the odd way the government measures the cost of owning a house, rising rents also mean a higher imputed cost for owning a home.
Inflationary pressures abated in most categories in June. Energy costs fell, but that was only temporary, we know, as gasoline prices have risen since then.
Apparel costs were flat after rising 1.8% in the past three months.
Medical costs rose 0.3%, matching May's increase.
Transportation costs fell 0.2%, on lower fuel costs. New vehicle prices fell 0.1%, while airfares rose 3.1%.
Tobacco prices rose 0.8% in June, the biggest gain in a year. End of Story