After producer prices disappointed modestly yesterday, prompting treasury yields to tumble, all eyes are on consumer prices today as it met expectations rising by 2.9% YoY - the fastest rate of increase since Dec 2011 - thanks to soaring rent/shelter costs.

CPI highest since 2011...

Core CPI highest since 2008...

Under the covers, one of the bigger drivers was a surge in shelter costs...

Shelter inflation rose 3.5% YoY and Rent Inflation rose 3.6% YoY

Just a good thing wages are rising... oh wait!!