- The sharp increase matched the consensus estimate, so it wasn’t a surprise for the markets.
- Core inflation remains muted, increasing just 0.1% for the month and 1.7% over the last 12 months.
- Today’s data won’t alter the Federal Reserve’s course toward higher short-term interest rates. This month’s reopening of a 5-year TIPS is looking attractive.
Also, I have updated my Tracking Inflation and I Bonds page with the new numbers.
And here are the new January inflation indexes for all TIPS.