MNI BRIEF: No Upside Surprise For Fed In Jan CPI

U.S. headline inflation posted the biggest year-on-year gain since August last month, the Bureau of Labor Statistics said Wednesday, with January CPI higher by 1.4%. Against some expectation, the data was below expectations, with some analysts pointing to a gain of 1.6% y/y. With no upside surprise, there will be little in the data for policymakers to take fright at - for now, at least.

Gasoline prices were up 7.4%, accounting for most of the overall increase, the BLS said. Total energy prices rose 3.5% in January. Food prices increased 0.1% following a 0.3% gain in December. The 0.3% increase in the cost of dining out more than offset a 0.1% decline in grocery store prices, the BLS said.

Fed Chair Jay Powell speaks to the Economics Club of New York later today and the issue of future inflation expectations will certainly be a hot topic for questioners.