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Core Services CPI Soars As Rents Gain

US DATA

What leaps out is the VERY strong core services M/M number: +0.44%, the highest since April and looks like the 2nd highest for many years, and up from +0.35% M/M in Dec.

  • This was largely on a big jump in rent prices: OER up +0.42% M/M, similar to recent months, but rent of primary residences +0.54%M/M. Recreation +0.9% M/M, medical care services +0.6% (doubled from previous 2 months), airfares remained hot.
  • Core goods actually decelerated, to +0.995%, vs +1.19% prior.

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