January inflation data:
- Prior was +2.3%
- Ex food and energy +2.3% vs +2.5% exp
- Prior ex food and energy +2.3%
- CPI m/m +0.1% vs +0.2% exp
- Ex food and energy m/m +0.2% vs +0.2% exp
The headline is a touch on the soft-side but the m/m numbers are in line. I don't think the market is going to shift its focus to inflation for a few months. The headline is a bit hot here but the drop in energy prices is going to suppress Feb data so there's already some downward pressure in the pipeline. Add in the negative shock to Chinese/global growth and there's no reason to worry about inflation.
