• The effects of the Iran war were evident in the CPI inflation report, which hit a three year high in May. Core inflation edged up to 2.9% y/y in line with consensus expectations.
• NFIB pricing indicators also moved higher in May and inflation concerns continued to rise, while hiring plans continued to soften.
• Existing home sales beat market expectations in May, but activity remains low compared to historical norms. Lacklustre markets are reflected in home price growth, which is still in the slow lane (1.3% y/y).
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