Summary
- The 0.5% increase in ‘headline’ inflation was well above the 0.3% consensus estimate.
- Core inflation rose 0.3%, also above the consensus estimate of 0.2%.
- Non-seasonally adjusted inflation rose 0.54% in January; what does this mean for holders of TIPS and I Bonds?
Read my full analysis on SeekingAlpha.com
Also, I have updated my Inflation and I Bonds page with the new numbers.
And here are the new March Inflation Indexes for all TIPS.
This discussion raises in my mind what is the optimal amount of inflation bonds to hold in a diversified bond…