The CPI came in by and large as expected, with a very slight beat on the headline driving a 1.4% y/y change versus the 1.3% that was forecast. Core inflation came in as expected, rising 0.1% on the month and 1.6% on the year. Despite the brisk housing market, OER rose just 0.1%, while food inflation increased by 0.4% on the month and 3.8% on the year. Medical care fell by 0.2% on the month and is up just 1.8% on the year-- I guess there are no hedonic adjustments there. There isn’t necessarily an immediate impact from the data, but it’s hard to see the inflation theme going away in the near term.