Headline inflation of 3.2% came in above expectations, continuing to expand versus last month…

… on the back of acceleration in food and transportation inflation, which offset deceleration in shelter.

In transportation, gas prices are the main driver - which could see some relief in the coming prints…

… while food inflation is proving sticky, climbing to 4.3% on Y/Y jumps of 5% and 9% in the price of fresh fruit and vegetables, respectively.

Together, upward pressure in those two categories is masking the steady grind lower in shelter inflation - driven by mortgage interest costs and rent expense.

While small, one other category worth flagging is computer equipment - which flipped positive for the first time since 2020…

… on demand linked to data centres.

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