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CPI: Weak Core Goods Prices Eclipse Services Rise

US DATA

Core inflation came in at +0.1015% M/M unrounded, so firmly bottom of 0.1-0.3% expected range and 0.2% median. This was mainly due to a drop in core goods prices, -0.2% M/M, lowest since May 2020. By contrast, core services were +0.2%, highest since Nov 2020.

  • This is somewhat of an odd development, with input prices / supply chain issues appearing to mount in February and thus seeming likely to contribute to higher core goods inflation.
  • Instead, year-on-year core goods and services inflation are on a par, after months of seeing core goods inflation race ahead of services inflation.


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