CPI up. Housing Starts down.

CPI (May 2014)

– CPI overall month/month +0.4%. Previous was +0.3%

– CPI overall year/year   +2.1%. Previous was +2.0%

– CPI core (less food & energy) month/month   +0.3%. Previous was +0.2%

– CPI core (less food & energy) year/year    +1.9%. Previous was +1.8%.

This data is seasonally adjusted and the non-adjusted data is lower. This data is higher than expected and could send bond yields and home loan rates up.

Housing Starts (May 2014)

– Starts seasonally adjusted, annualized  1,001,000.  Previous was 1,071,000

– Permits seasonally adjusted, annualized  991,000.   Previous was 1,059,000.

Weakness in housing is becoming systemic.  That is to say, this is something other than the normal cycles of up and down.  It may be the case that with home prices increasing and incomes not moving in harmony and mortgage standards tightened we are going to have a flat or decreasing homeownership rate.

ICSC-Goldman Store Sales (week ended 6/14/2014)

– Store Sales week/week  +0.4%. Previous was -2.8%

– Store Sales year/year +3.1%. Previous was +3.0%

Redbook Chain Store Sales (week ended 6/14/2014)

– Store Sales year/year +3.5%. Previous was +3.3%.