Weekly jobless claims surged by 27,000 to 263,000, well above the Dow Jones estimate of 235,000 and the highest reading since October 2021. "Today's CPI report has been trumped by the jobless claims report," said Seema Shah, chief global strategist at Principal Asset Management. If anything, the jump in jobless claims will inject a bit more urgency in the Fed's decision making." Shelter costs - which account for roughly one-third of CPI - rose 0.4%, remaining the largest driver of inflation. Tariff-sensitive goods also saw increases: new vehicle prices rose 0.3%, while used cars and trucks climbed 1%.