- January CPI up 0.4%. In the past when this was only 0.1%, Bob Brinker has "annualized" this number by multiplying it by 12. Multiply 0.4% by Bob's 12 and we get an annualized inflation rate of 4.8%!
- Due to seasonal effects, December CPI was revised up to 0.4% from its earlier estimate of 0.3%
- Excluding volatile food and energy, January Core CPI was up 0.3%, the largest gain since June 2006
- Year-over-year CPI up 4.3% in January.
- Year-over-year core inflation is up 2.5% over the same period, the fastest pace since February 2007.
Inflation Details from CBS Marketwatch:
- Energy prices rose 0.7% in January after much larger increases in the past two months.
- Gasoline prices rose 1.2% after seasonal adjustment. Natural-gas prices rose 2.2%.
- Food prices rose 0.7% in January, the largest increase since last February.
- The gain in the core rate reflects accelerated prices for apparel, medical care, recreation, and education.
- Shelter prices, which represent about 30% of the CPI, rose 0.3% in January.
- Transportation prices rose 0.5%, led by higher fuel prices.
- Medical-care prices increased 0.5%, as prescription drug prices rose 0.7%, the largest gain in a year.
- Apparel prices rose 0.4% after seasonal adjustments. Airline fares rose 0.8% in the month.
- Food prices were unchanged in January.
Housing Starts UP 0.8% vs down 14.8% in Decenmber
Building Permits down 3.0% vs down 7.1% in December. On a seasonally adjusted basis, building permits are running at a rate of 1.08M, the lowest reading since November 1991!
Slow single family housing means people need appartments to live in. Single-family housing starts fell by 5.2% in January, but starts on structures with two or more units rose by 22.3%.
Yesterday the National Association of Home Builders (NAHB) reported that the mood of U.S. homebuilders improved slightly for a second straight month. The NAHB reported their home builders' housing market index rose to 20 in February from 19 in January.
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