


Expectations were for a big drop in the YoY consumer price index (from +3.4% to +2.9%) but instead it surprised to the upside (just as we warned) with a +3.1% YoY print for headline CPI (spoiling the sub-3% partiers). Consumer prices rose 0.3% MoM (more than the 0.2% exp) but the headline did decline from +3.4% to +3.1% YoY...
Source: Bloomberg
Core CPI fell below 4.00% YoY for the first time since May 2021, but the +3.86% YoY print was hitter than the 3.7% exp (with prices rising 0.4% MoM - the biggest jump since April 2023)...
Source: Bloomberg
CPI Core: The index for all items less food and energy rose 0.4 percent in January.
Core Service inflation picked up MoM...
..and accelerated YoY
Source: Bloomberg
Under the hood, food and Energy services costs jumped MoM along with transportation services...
And one step deeper - the so-called SuperCore: Core CPI Services Ex-Shelter index - soared 0.7% MoM (the biggest jump since Sept 2022...
... driving the YoY change up to +4.4% - the hottest since May 2023....
Source: Bloomberg
Finally, as a reminder, lower inflation does not mean lower prices.
Source: Bloomberg
The actual index of consumer prices hit a new record high this month - and is up over 18% since President Biden's term began (it was up 8% over President Trump's full four year term).
And it gets worse...
Source: Bloomberg
The re-accleration of inflation means wage growth is back in the red relative to prices.