Details of the February 2016 US consumer price index report:
- Prior was +1.4% y/y
- CPI ex food and energy +2.3% vs +2.2% y/y expected
- Prior was +2.2%
Month-over-month data:
- CPI -0.2% vs -0.2% exp
- Ex food and energy +0.3% vs +0.2% exp
Real average weekly earnings +0.6% vs +1.1% prior.
The inflation numbers were a touch hot but with wages up just 0.6%, will the Fed feel a need to send a hawkish signal? So far the market is saying 'yes' as the US dollar catches a quick bid.
The +2.3% core inflation figure will stand out to the Fed hawks in a big way. Higher wages haven't materialized but they surely believe that it's only a matter of time.
The quick rise in the series is the kind of thing that keeps a hawk up at night.
