ECON: Tamer Than Expected Inflation At Consumer Level
- Headline CPI declined 0.0199 vs 0.0 consensus
- Core CPI (excludes food/energy) +0.1 vs +0.2 consensus
- Quick thoughts: Inflation data continues to sit near the back of the room full of economic indicators, never raising its hand. This has been the case for several years, and most notably since the initial QE2 fears worked their way out of markets in late 2010, early 2011 (themselves not nearly as developed as the early 2009 inflation panic). Markets don't trade this report and despite bond market strength in the past 8 minutes, they're not trading it today either. It won't always be this way, but until further notice, PPI and CPI are relics of a bygone era. Again, this could quickly change if they move to the front of the class and start acting up.
From the BLS:
The Consumer Price Index for All Urban Consumers (CPI-U) was
unchanged in December on a seasonally adjusted basis, the U.S. Bureau
of Labor Statistics reported today. Over the last 12 months, the all
items index increased 1.7 percent before seasonal adjustment.
The gasoline index declined again in December, but other indexes,
notably food and shelter, increased, resulting in the seasonally
adjusted all items index being unchanged. Gasoline was the only major
energy index to decline; the indexes for natural gas and electricity
both increased. Within the food category, five of the six major
grocery store food groups increased as the food at home index rose
for the third consecutive month.
The index for all items less food and energy increased 0.1 percent in
December, the same increase as in November. Besides shelter, the
indexes for airline fares, tobacco, and medical care also increased.
The indexes for recreation, household furnishings and operations, and
used cars and trucks all declined in December.
The all items index increased 1.7 percent over the last 12 months,
compared to a 1.8 percent figure in November. The index for all items
less food and energy rose 1.9 percent over the last 12 months, the
same figure as last month. The food index has risen 1.8 percent over
the last 12 months, and the energy index has risen 0.5 percent.