DATA REACT: State Street’s John Herrmann on CPI – “Core inflation
remained especially benign, coming in at +0.053% m/m, rounding UP to
+0.1%. The year-o-year growth rate fell to +1.33% from +1.48% in
January. Core inflation has now broken BELOW the Fed’s target range for
price stability, of +1.5% to +1.75%.
Core inflation could grind lower over the coming six months, towards
+1.0%, possibly lower. As a result, expect Ben Bernanke’s inflation
assessment to remain extremely dovish.”