Today's inflation report has something for everyone. Both headline and core CPI gain 0.3% in December. Headline CPI was a bit higher than the hoped-for 0.2% while core CPI was about where everyone expected. For the last twelve months, headline CPI was 3.4% and core 3.9% both slightly higher than hoped but at least we got core CPI below 4%. What does all this mean? I don't expect interest rates to go meaningfully lower any time soon. Higher for longer...
Here is ZeroHedge's breakdown of the numbers:
Headline CPI Hotter Than Expected In December, Food Costs Hit Record High
...did Goldilocks just die?
Tyler Durden
Here is Mike Shedlock's analysis:
Hotter Than Expected CPI Led by Rent, Up Another 0.4 Percent
For well over two years, economists and analysts said rent was declining or soon would be. But for the 28th consecutive month rent and OER were up at least 0.4 percent.
Mike Shedlock
The Inflation Guy's January 11 post is also worthwhile.
Inflation Guy’s CPI Summary (Dec 2023)
You can follow me on X at @inflation_guy. Sign up for email updates to my occasional articles here. Individual and institutional investors, issuers and risk managers with interests in this area be …
Michael Ashton
Finally, here's a look back at inflation since the late 1980's:
