Well...

 

Lets just get started...

Dow drops 300 points, selloff intensifies after hotter-than-expected January CPI report

'Stocks fell Tuesday, reversing earlier gains, after the January consumer price index report showed that inflation grew at a 6.4% annual rate, slightly higher than expected."

"A stubbornly high inflation reading sent stocks sliding. The consumer price index rose 0.5% for the month, which translated to an annual gain of 6.4%. That was slightly higher than economist estimates of the basket of goods and services rising 0.4% on the month and 6.2% on the year, according to a survey by Dow Jones. In addition, the December report was revised to show a slight gain instead of a decline."

(It's stubbornly high because its systematic. It's build into the system now. Somebody's been saying it since the pandemic hit in March of 2022 that we were gonna print to much $ and this would end up being the consequence...Who else been sayin that since moment pandemic hit practically? The big news in that above statement is: "In addition, the December report was revised to show a slight gain instead of a decline." )

“While there were no major surprises in today’s CPI reading, it is a reminder that while inflation has peaked it could be a while before we see it moderate to normal levels,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment office."

(HEY! YoYo? 

Core inflation's been going up there buddy...

False economic prophets of Ball anyone?

1 Thessalonians 5:3 much there buddy?

These people...)

Stock market news today: Stocks swing after January CPI shows inflation picked up

"The January Consumer Price Index (CPI) released by the Bureau of Labor Statistics Tuesday morning showed prices rose 0.5% in the first month of the year, and 6.4% on an annual basis, more than economists expected."

"Core CPI, which strips out the volatile food and energy components of the report, climbed 0.4% over the prior month and 5.6% year-over-year, also higher than forecast."

"New seasonal adjustments released by the BLS on Friday also switched December's initial reading of a 0.1% monthly drop in headline inflation to an increase of 0.1% in the year's final month."

(The problem is to much $ in the system devalues your currency. And? in all likelihood the Fed has lost control of the $ supply. These are not easy problems that are just going to magickly go away because we want them to.)

January CPI inflation rate slows to 6.4% but monthly inflation rose by 0.5%

"Consumer Price Index (CPI) data released on Tuesday showed that prices for a range of goods and services rose by 6.4% over the past 12 months, down slightly from an annual rate of 6.5% in December and a 40-year high of 9.1% in June."

"On a month-by-month basis, however, prices increased by 0.5% in January compared with a slower gain of 0.1% in December. The acceleration was driven by shelter costs."

'Core CPI

Core CPI, a measure of inflation that strips away volatile food and energy prices, rose by 0.4% for the second month in a row. That put the annual core CPI inflation rate at 5.6%."

(Thats the one ya gotta watch, thats the one that takes out food and energy cost. If inflation has "peaked" as some claim? Why is that number on the rise then?)

"Housing costs drove inflation higher 

Rising shelter costs were the biggest contributor to rising inflation last month and year, accounting for half of the 0.5% monthly increase in prices and 60% of the 6.4% annual inflation rate, the Labor Department said. Shelter costs rose by 0.7% last month and are up 7.9% from a year ago.'

"What’s different about the index in January? 

New changes went into effect last month to adjust for shifting consumer spending patterns. By design, the index takes into account price increases for more than 200 categories as well as the portion of the typical Americans’ budget they take up." 

"This is done so that the overall index reflects the proportional price changes consumers experience. Without taking consumers’ budgets into account the 70% increase in the price for a carton of eggs from a year ago could disproportionately skew the overarching inflation data."

(Were getting to a point...)

"Ahead of January’s index release the Bureau of Labor Statistics, published new weights for certain categories, a process it undergoes every two years. Moving forward, it will update the weights every year."

(Begs the question why wasn't it doing so before?)

"Additionally, prior to Tuesday's release, the BLS published new annual calculations to correct for price changes that correspond to seasonal demand. The changes resulted in revisions to previously reported index data."

"For instance, the initial index report for December found that consumer prices declined by 0.1% from November. However, revised data released last week found that prices actually rose by 0.1% in December. It also found that prices rose by 0.2% in November versus the previously reported 0.1% increase."

(Goodness knows they couldn't have told you that before the holidays right? And they actually revised things and got a more accurate picture of what is really going on? I'm amazed.)

"The new weighting system combined with the new seasonal calculations played a role in the minimal deacceleration for prices over the past 12 months from December to January, said Raymond James' chief economist Eugenio Aleman."

(Now were getting to the heart of the matter. Remember in the 80's when we used to laugh at Russia propaganda? Now seems like were the ones manipulating the data if ya ask me...)

"The report likely won’t give the Fed enough confidence that inflation will continue to ease on its own for it to stop raising interest rates, said Bill Adams, chief economist at Comerica Bank."

(It (Inflation) hasn't been:

 "easing on it's own", 

ever, 

it's been the higher interest rates 

and the SPR drawdown(s) us and our allies implemented 

that have reduced it to this point.

The question becomes?

What now?)

"When is the next inflation report?

The Fed's preferred measure of inflation, the Personal Consumption Expenditures price index comes out on Feb. 24. The next consumer price index report is due on March 14."

Jason Furman is an American economist and professor at Harvard University's John F. Kennedy School of Government and a nonresident senior fellow at the Peterson Institute for International Economics. 

"A month ago 3 month-annualized supercore inflation (i.e., ex food, energy, shelter and used cars) was 1.8%. Now with new seasonal adjustment and an additional month of data it is 3.7%.

Time to update your inflation views."

(Not for some of us its not Mr. Furman. 

Some of us had this one pegged from the onset of Covid.)

I  love you baby.