Summary
- Gasoline prices fell 5.5% in January, continuing a downward force on headline inflation. Headline inflation has fallen from 2.9% in June 2018 to 1.6% in January.
- Core inflation, which removes food and energy, rose a moderate 0.2% in January and is holding at 2.2% for 12 months.
- Non-seasonally adjusted inflation rose 0.19% in January, which will increase March principal balances for holders of TIPS.
Investors in Treasury Inflation-Protected Securities and U.S. Series I Savings Bonds are also interested in non-seasonally adjusted inflation, which is used to adjust principal balances on TIPS and set future interest rates for I Bonds. The BLS set the January inflation index at 251.712, 0.19% higher than December’s number. Non-seasonally adjusted inflation has increased 1.6% over the last year.
Yes, in this case it was $10,000. I will add to that longer-term position if I see the opportunity. Of…