CPI shows we are an inflation nation

The June Consumer Price Index just hit the tape. Both the headline and "core" numbers were worse than expected. Have a look ...

* The overall CPI shot up by 1.1% in June. That compares with a forecast for an increase of 0.7%. It's the largest one-month rise since September 2005, when hurricane-related damage to oil production and refining facilities drove energy prices higher. Excluding that month, you have to go all the way back to June of 1982 to find a one-month change equaling this one (and all the way back to March 1980 to find a larger increase).

That pushed the year-over-year inflation rate to a whopping 5%. That's up from 4.2% a month earlier and the highest going back to May 1991 (a tie).

* The "core" CPI - which eliminates those products none of us use, like gas and food -- rose 0.3%, faster than the 0.2% gain that analysts were expecting. Core CPI is now rising at a 2.4% rate, up from 2.3% a month earlier but roughly within the range of the past few months.

* Inflation was widespread, with housing inflation up 0.5% on the month, food and beverage prices up 0.7%, education and communication prices up 0.5%, and inflation in other goods and services up 0.4%.