CPI at 2.7%

"U.S. consumer prices grew at a faster-than-anticipated annualized pace in June, with the Labor Department’s headline consumer price index coming in at 2.7% in the twelve months to June, compared with expectations of 2.6% and May’s reading of 2.4%.

Month-on-month, the figure was 0.3%, up from 0.1% in May and in line with projections.

However, the data release had more positive news on an underlying basis, as the so-called "core" CPI, which strips out volatile items like food and fuel, grew 2.9% year-over-year, below the 3.0% expected, and 0.2% on a monthly basis, again below the 0.2% forecast."

The take away:

The new narrative: "lack of tariff inflation is transitory"