US December CPI +6.5% y/y vs +6.5% expected

• Prior was +7.1%
• m/m CPI -0.1% vs +0.0% expected
• Prior m/m reading was +0.1%
• Real weekly earnings Earnings A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price Read this Term +0.1% vs +0.2% prior

Core inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term:

• Ex food and energy +5.7% vs +5.7% y/y expected
• Prior ex food and energy +6.0%
• Core m/m +0.3% vs +0.3% exp
• Prior core m/m +0.2%

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.

Details:

• 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.

Biden is set to speak on the report at 10 am ET.