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The CPI rose 0.5% in January. Energy led the way, up 5.5%. Apparel rose 1.7%, shelter 0.2%. Year-over-year CPI was flat.
Inquiring minds are diving into the January Consumer Price Index (CPI) report from the BLS.
For the month, the CPI jumped 0.5% but year-over-year the CPI was flat.
CPI Year-Over-Year
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CPI Year-Over-Year Major Categories
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CPI Components
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Shelter, the largest weighted component in the CPI, helped limit the month-over-month rise.
It's curious the BLS does not consider shelter a "major category" even though it constitutes 32.8% of the CPI.
Inflationista Alarms
Breaking: Consumer Price Index reached 2.1 percent in January, a sign of inflation that could signal a bumpy day ahead on Wall Street https://t.co/TnepHDcAVh
— Washington Post (@washingtonpost) February 14, 2018
US 10-year Treasury yield jumps after report shows higher-than-expected inflation https://t.co/l4griOmxIT
— CNBC (@CNBC) February 14, 2018
JUST IN: Dow Jones futures drop sharply after new data fuels inflation fears https://t.co/Twu73KL6Us pic.twitter.com/tnyiPgvXot
— The Hill (@thehill) February 14, 2018
Hmmmm. Higher CPI than expected. And S&P futures immediately drop. The inflation scare has further to run.
— John Authers (@johnauthers) February 14, 2018
#Gold rose almost $24 or 1.8%, most since May after #inflation surprise (to the upside). pic.twitter.com/GDujeXzn5D
— Holger Zschaepitz (@Schuldensuehner) February 14, 2018
Spotlight Crude
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The thin blue line in the above chart connects January 2017 to January 2018.
Four months from now, energy will give a big boost to the year-over-year CPI even if the price of crude remains steady.
The May 2107 close was $46.04. A jump from $46.04 to $60.81 would constitute a 32% year-over-year jump.
Crude will place increasing upward pressure on year-over-year CPI comparisons unless it takes a big dive soon.
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