MNI BRIEF: US Jan CPI Hotter Than Expected Across The Board
MNI (WASHINGTON) - U.S. CPI inflation accelerated to a hotter-than-expected 0.467% in January and core CPI to 0.446%, both significantly above Wall Street expectations for a 0.3% gain on both measures, according to a Bureau of Labor Statistics report Wednesday. The 12-month measures for headline and core CPI rose a tenth to 3.0% and 3.3%, respectively.
The data reaffirms a Federal Reserve that appears unlikely to cut interest rates again any time soon. The 10-year Treasury yield climbed to a 4.6187% high after the report. Futures traders are pricing in a first cut of the year by December.
Shelter prices rose 0.4% in January, accounting for about 30% of the rise in the headline index. Non-housing core services, or supercore, CPI rose 0.76% in January, faster than the 0.20% in December. Core goods also jumped to 0.28% in the month from flat in December. The BLS's annual revisions of seasonal factors affected data five years back. (See: MNI INTERVIEW: Fed Likely On Hold For Most Of 2025-Kroszner)