1 down, 2 to go on inflation front

Every month, we get 3 major inflation reports -- import/export prices, the Producer Price Index, and the Consumer Price Index, usually in that order. Today's import price data was troubling to say the least.

In May ...

* Overall prices climbed 1.6%, twice as much as Wall Street forecast.

* The news was even worse for “non-fuel” import prices, a core inflation measure the market follows closely. They surged 0.7% -- the most in any month since 2002 when the government started tracking the category.

* Several categories of import prices rose. They included petroleum(+5.2%), consumer goods (+0.3%), and industrial supplies (+3.9%).

Not much for the "well-contained inflation" Fed to hang its hat on.