**MNI: 5 Things We Learned From January CPI Data>

By Kevin Kastner, Sara Haire, and Holly Stokes

     WASHINGTON (MNI) - The following are the key points from the 

Consumer Price Index data for January released by the Bureau of Labor 

Statistics Wednesday: 

     - The y/y rate for headline CPI held steady at 2.1% in December and 

the y/y rate for core CPI held steady at 1.8%, as opposed to the 

declines that analysts had expected. Concerns about inflation have 

haunted the markets over the past few weeks as the March FOMC meeting is 

on their mind, so today's data is likely to cause even more turmoil on 

that front. 

     - January CPI was up 0.5%, above the 0.3% gain expected by analysts 

and the whisper number. The change before rounding was +0.53850%, on the 

way to a 0.6% gain. 

     - Core CPI rose 0.3% (+0.34945% unrounded, close to being rounded 

to +0.4%), ahead of the 0.2% gain expected by analysts and driven by a 

0.3% gain in owners equivalent rents, a 1.7% jump in apparel prices and 

a 0.6% rise in medical care services. Analysts have missed core CPI to 

the low side in each of the last three years, so today's data is a 

departure from that trend. 

     - Lodging away from home prices fell 2.0% and new vehicle prices 

fell 0.1%, but used car and truck prices were up 0.4%. Overall, the 

picture is of strong core price gains. 

     - Energy prices jumped 3.0% for January after a 0.2% decline in 

December, with gasoline prices up 5.7%. CPI excluding only energy was up 

0.3%. Food prices were up 0.2%. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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