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Breadth of Inflationary Pressures Increased Sharply In January

US DATA

Our estimate of dispersion across 57 items over the entire CPI basket saw a sharp increase in the breadth of inflationary pressure in January. The figure can be noisy from month-to-month but it's an abrupt about turn - see charts.


  • Share in excess of 3% annualized in Jan: 58% vs 39% in Dec (47% pre-rev). It averaged 41% in 2019.
  • Share in excess of 5% annualized in Jan: 49% vs 23% in Dec (32% pre-rev). It averaged 25% in 2019.
  • Share seeing outright deflation in Jan: 32% vs 37% in Dec (37% pre-rev). It averaged 38% in 2019.
Richmond Fed's Barkin ('24 voter) has been one FOMC member increasingly talking on the need to see a broadening in disinflationary progress.

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