U.S. Inflation Was Unchanged In January, Dips To 1.6% For A Year

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.

Read my full analysis on SeekingAlpha.com

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About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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