This is the first m/m reading in inflation in more than a year but the market was tilted towards a soft reading and the initial trade is disappointment with stock futures now down 0.5% from +0.3% pre-data.
Used cars -2.5% m/m vs -2.9% m/m prior (Goldman Sachs forecast -1.6%)
Food +0.3% m/m vs +0.5% m/m prior
Energy -4.5% vs -1.6% m/m prior
Gasoline -9.4% vs -2.0% m/m prior
Fuel oil -16.6% m/m +1.7% m/m prior
New vehicles -0.1% m/m vs 0.0% prior (Goldman forecast -0.5%)
Apparel +0.5% vs +0.2% prior
Medical care +0.1% m/m vs 0.2% prior
Owners equivalent rent +0.8% (Goldman saw +0.64%)
Airline fares -3.1% (Goldman saw -2.0%)
Shelter prices and core CPI less energy services (some calling it supercore) were up 0.6% on the month as well. CPI ex-food, energy and shelter was -0.1% m/m. You would hope for more of a disinflationary impulse given the cratering in energy prices. That said, the Fed funds market is now more confident in 25 bps at 81% for the Feb 1 meeting and the US dollar is now sinking.