Don't Bet the House on Accelerating Inflation

The first paragraph in a Reuters article on the April consumer price index (CPI) told readers:

"U.S. consumer prices recorded their biggest increase in more than three years in April as gasoline and rents rose, pointing to a steady inflation build-up that could give the Federal Reserve ammunition to raise interest rates later this year."

Before the cheering for another Fed rate hike gets too loud it would be worth looking at the data more closely. The core CPI has risen modestly in recent mon...