Bloomberg Surveillance · Tuesday, July 14, 2026
Despite a flat core CPI reading, concerns persist about underlying inflation. While energy prices provided a headline drag, volatile components like motor vehicle insurance and wireless telephone services are noted as concerns within the core CPI. Food prices are also up significantly, and a tight labor market suggests demand-led inflation may still be present.
“Facetiously, when I saw the core CPI come in flat, I thought, Oh, Kevin Worrish is the most successful fedhair ever.”
“But underneath the surface, I am still concerned, And firstly, I don't know that we should be saying inflation is totally solved when core inflation in America is still at two point six percent.”
“We still have some pretty serious issues in the areas that matter most to consumers, like food which is up three percent and still likely to accelerate ahead, and an extremely tight labor market that reminds me of the good old fashioned demand led inflation, which is still in the system as well.”