2024-03-13 07:01:00 ET
Summary
- Core services CPI - 61% of total CPI and infamous for historic head fakes - is approaching 6% annualized six-month average.
- The overall CPI has been pushed down by plunging energy prices and by dropping durable goods prices.
- The CPI for energy products and services jumped by 2.3% in February from January, seasonally adjusted.
Core services CPI - 61% of total CPI and infamous for historic head fakes - is approaching 6% annualized six-month average.
The "core services" CPI (services minus energy services) is crucial. The majority of consumer spending goes to core services, and Powell keeps talking about it. Core services include housing costs, expressed in rent factors. And people, including Powell, have been saying that rents will eventually come down, we know that, etc., etc., so we also look at core services without housing. And both measures have been re-heating for months - with both their six-month moving averages approaching 6% annualized!...
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For further details see:
Beneath The Skin Of CPI Inflation, February: Inflation Saga Far From Over, Core CPI And Core Services In Ominous 6-Month Trend