Summary
- Year-over-year inflation rose 2.5%, the highest number in nearly five years.
- Gasoline prices rose sharply in January, but core inflation still rose 0.3% without gasoline. The Federal Reserve will take note.
- The report is welcome news for holders of I Bonds and TIPS, reversing a flat inflation index over the last three months.
Real my full analysis at SeekingAlpha.com
Also, I have updated by ‘Tracking Inflation and I Bonds‘ page with these new numbers.
And here are the new March inflation indexes for all Treasury Inflation-Protected Securities.
Treasury Inflation-Protected Securities 
Why do you say “reserving a flat inflation index level over the past three months”? With the 0.58 percent change wouldn’t we already be at 1.18 inflation component for the next i-bond period? 1.16 not 1.18
I’m curious as to why you regard higher inflation as “welcome news for holders of I Bonds and TIPS?” The increase in their holdings due to inflation simply results in their being able to buy exactly what they could buy previously … which would be no different if inflation was 0.0%.
I don’t cheer for higher inflation, but especially with TIPS, an investment has an ‘expected’ rate of inflation and I would like to see inflation at least run that high. Otherwise, an investment in a nominal Treasury would be preferred.