US January consumer price index report

US January CPI
  • Prior was +1.6%
  • Ex food and energy +1.4% vs +1.5% expected
  • Prior ex food and energy +1.6%
  • CPI +0.3% m/m vs +0.4% expected
  • Prior m/m reading was +0.2%
  • CPI ex-food and energy 0.0% m/m vs +0.2% expected

Wage data:

  • Real avg hourly earnings +6.1% vs +5.3% y/y prior
  • Real avg weekly earnings +4.0% vs +4.1% y/y prior

It's only one tick to the downside but with inflation worries starting to pick up, that's a big tick. The flat core reading (for the second month) is also soothing for the market. Treasury yields are fractionally lower today and we have a 10-year sale later.

The reaction has been notable with the US dollar sliding.