Consumer Price Inflation Hotter Than Expected Despite Goods Deflation
After jumping in December, analysts expected a modest acceleration in headline consumer prices and small slowdown in core prices, but the headline CPI printed hotter than expected at +2.5% YoY (despite only rising 0.1% MoM) – that is the hottest since oct 2018.
Source: Bloomberg
Under the hood, Energy commodities and Used Car prices slowed while Apparel and Energy Utilities rose the most…
Shelter and Rent inflation ticked up in January…
From the top-down, Services inflation is running at +3.1% YoY (the last time it was hotter was August 2016) while goods prices are deflating YoY…
Source: Bloomberg
Finally we note that Real Average Weekly Earnings are flat year-over-year…
Source: Bloomberg
So take your pick Jay Powell.
Tyler Durden
Thu, 02/13/2020 – 08:36
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