First, a quick recap:

Headline CPI prices surged by 1.0% (0.97% unrounded) mom in May, beating consensus expectations of a 0.7% increase.

Energy prices spiked 3.9% mom as gasoline prices reached record levels and food prices increases 1.2%.

Yoy headline CPI inflation made a new 40-year high of 8.6%.

The strength in core inflation was across the board:  core commodities rose 0.7% on the back of 1.0% and 1.8% increases in new and used car prices, respectively. Along with the sharp drop in auto sales last month, this suggests that the auto industry was hit by a fresh bout of supply shortages last month. Meanwhile apparel prices increased 0.7% and other goods were up 0.8%.

Core services were also very strong in May, increasing by 0.6%: the main drivers were 0.6% increases in OER and rental prices, and a 0.4% rise in medical care services. The reopening-related components showed continued large increases. Lodging was up 0.9% and recreation services increased 0.5%. Airfares spiked 12.6%, contributing nearly 11bp to the core.