Modest Inflation for January

This morning, the government said that consumer prices rose 0.1% last month after increasing by 0.2% for the prior three months.

The “core rate,” which excludes food and energy prices, rose by 0.2%. Or to be somewhat more precise, 0.2423%. In the last 12 months, the core CPI is up 2.3%.

In January, gasoline prices fell 1.6% after jumping 3.1% in December. Food prices gained 0.2%, matching December’s increase. Food consumed at home ticked up 0.1%.

Owners’ equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home, increased 0.3% after rising 0.2% for two consecutive months. The shelter index rose 0.4% after climbing 0.2% in December.Healthcare costs rose 0.2% last month after surging 0.5% in December. Apparel prices jumped 0.7% after increasing 0.1% in December. But new vehicle prices were unchanged in January after rebounding 0.1% in the prior month. Prices for used motor vehicles and trucks fell 1.2% after decreasing 0.4% in December.

We also learned this morning that initial jobless claims rose by 2,000 to 205,000. That’s still very low. Last week, claims were 203,000 which was the lowest since November.

There are still two Fed vacancies. Trump has appointed Christopher Waller and Judy Shelton. Waller is a conventional choice, but Shelton is controversial. (Gold standard et al.) Both will appear before the Senate Banking Committee today.

Posted by on February 13th, 2020 at 8:56 am


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