- Year-over-year U.S. inflation hit 2.5% in January, the highest number since October 2018.
- Gas prices declined, but core inflation held at 2.3%, indicating that inflationary trends are widespread in the economy.
- Non-seasonally adjusted inflation rose 0.39% in January, balancing off small declines in November and December. This is good news for holders of TIPS and I Bonds.
January’s report demonstrates — again — that U.S. inflation is not dormant and in fact is running at a “moderately brisk” annual pace, well above 2.0%.