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Core Goods Pick Up Steam, While Shelter Restrains Service Gains

US DATA

December saw the hottest core goods CPI print (+1.24% M/M) since June, though core services slipped to a 3-month low (+0.30% M/M).

  • Re core goods, new and used vehicle gains led the uptick; we also saw decent contributions from other categories including Apparel (fastest growth since Jan 2021) and household furnishings.
  • Re core services, the story is largely about shelter prices pulling back a bit: OER and rent of primary residence saw the slowest increases since August (+0.40% M/M and +0.39% M/M, respectively), though it's basically steadied out at +0.4% growth for the past few months. A variety of services areas made flat/negative contributions in December (Communication, recreation, education, motor vehicle insurance).

Source: BLS, MNI

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