Fed Doves Cry As Core Consumer Prices Jump At Fastest Pace Since August 2011

Tyler Durden's picture

This must be transitory, right? Core Consumer Prices surged 0.3% MoM - the biggest jump since August 2011 - and is up 2.2% YoY (the most since June 2012).

We assume this will be ignored for a data-dependent Fed that needs to keep the easing dream alive (as long as stocks are off the highs)...

Chart: Bloomberg

As detailed in the breakdown... this is a 2.2% YoY rise

As the details show, inflation is picking up...quickly...

The index for all items less food and energy increased 2.2 percent over the past 12 months. This is its highest 12-month change since the period ending June 2012, and exceeds the 1.9 percent average annualized increase over the last 10 years. The index for shelter has risen 3.2 percent over the span, and the medical care index has increased 3.0 percent. In contrast, the indexes for apparel and for airline fares have declined over the past 12 months.


The index for all items less food and energy rose 0.3 percent in January. The increase was broad-based, with most of the major  components rising, but increases in the indexes for shelter and medical care were the largest contributors.

Furthermore, Shelter costs surged 3.7% YoY - the most since October 2008. Wages may be barely growing, but at least rents are soaring - good job Janet.


It will be hard for Bullard to call for QE4 after this.

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Kaiser Sousa's picture

and here is ur London and NewYork takedowns of the phony paper prices of Gold & Silver as we all knew....



TeamDepends's picture

Aaaaaaand it's gone! PMs already back to unchanged. Whereas smackdowns used to last days, weeks, years; now they last for minutes. Soon, they will last for seconds then nanoseconds.

herkomilchen's picture

Any old decline in gold does not constitute a smackdown.  4 months ago, we saw smackdowns.  Monday mornings early in the A.M., thin market, then wham, gap down off a cliff, massive $10+ drop (a lot back then) for absolutely no reason.  Gold chart now is just normal fluctuations.  Not every price decline is a conspiracy.

Kaiser Sousa's picture

its not a conpiracy when everyone knows what your doing...

always sellig in London & NY after gains in Asia...

same times....same patterns....same directions.

AllThatGlitters's picture

You can see gold prices fluctuate here in real time:

Live Gold:

The pattern is so well established that when the usual pattern is not in play, it's more interesting.

Plus, when gold moves more than silver, you're getting an early indicator on the generally less significant silver trade, which gives you a nice opportunity on the more volatile silver trade.

Live Silver:

Arnold's picture

premiums on the barbaric relic are getting onerous.




Buy physical low and you own it, free and clear.

I'm willing to bet a silver quarter you cannot name something else.

knukles's picture

Lookielookielookie  We did it!  Inflation's back!  Let's tighten some more!
And if that don't work, we'll do negatiove interest rates!  Look how that's workin' for the Japs!  Nikkie's a boomin'
Fukcin'A with somebody else's stick!                 Whoooie!

Arnold's picture

Lots of pathways being presented.

Will We choose the right one?


Experience says no.

(disclaimer: the use of the royal We no way infers that I wish to be associated with the usual suspect scumbags.)

actionjacksonbrownie's picture

There is recent trend developing that I would like to see continue. Each morning between 8:00 and 8:30 the shorts pile in and slam the Gold price. Then the price rebounds to 9:00, putting all those new shorts underwater. Then, we get a rinse/repeat at 9:30 as more shorts pile in, and from 10:00am until noon they are similarly squeezed into the red by another subsequent rise in the Gold price.


I love the smell of napalmed shorts in the morning.

sopko16's picture

It is interesting: they say that the financial system gets more and more unstable under increasing levereage... and corporate finance math (although most of it is drivel) confirms this:


Investing in our current type of environment seems to be starting to become INSANELY difficult: things can change value really quickly and good luck with the precious metals. I suppose if you are super long-term aand buy dividend yields into weakness but I'm definitely NOT doing anything and have been all in cash here for a decent amount of time until I can "learn how to trade and invest."

I've been doing this for going on 7 years: and then more I learn, the more scared/nervous I get!  :)


TeamDepends's picture

Like we said in the other post, if you can simply do without the luxury of food you'll come out of this smelling like a rose.

Insurrexion's picture



...or smelling like a decaying, starving carcass of a man, or woman who once cared.

TeamDepends's picture

With assets like yours, you should at least be able to keep yourself fed and in smokes during this Greatest Depression.

Insurrexion's picture



They are pretty, aren't they?

The neighbor boys like to watch me touch them.

knukles's picture

That's sexist.  I got a big hairy penis but I don't go around showing it to everybody for food.

slightlyskeptical's picture

It appears that if you don't eat out your food costs actually went down.

SDShack's picture

Actually, according to the data, the luxuries that are becoming more expensive for the sheeple are housing and healthcare. But as you say, like food, this is a luxury and not a necessity. Kind of like full time jots... income... savings... retirement... etc. They are all luxuries now too. Heck of a job Brownie Yellen!

FreeNewEnergy's picture

Silver closed out 2015 at 13.82. Yesterday, spot was 15.25. That's a 10% gain. I'll take it.

Seems the smackdowns aren't having much effect, since stocks are down 10% on the year, but gold and silver are up roughly the same percentage.

Karma's a bitch, mutherfuckers.

Sow the wind, reap the whrlwind. And, damn, it's getting windy. Just listen to Hillary huff, puff and cough. (hint: that cough ain't going away. It's the leftover result of either a stroke or a severe concussion)

iggenFlot's picture
iggenFlot (not verified) Feb 19, 2016 8:45 AM

What the hell is 'trasitory'?

Kefeer's picture

It is a mystery that only the FED knows.

order66's picture

Check out this pic of Janet's reaction to that CPI print:


JRobby's picture

The FED know shit, hence the shit show we are in.

new game's picture

full steam ahead to da berg. just read stockmans assessment and it is not good no matter how ya look at it. it is very telling, even manipulated metrics are "not so good". but the fed know not what they do, but who they take care of-me talking.

and the band plays on....

searching for the inflatable boat and pump to sealthfully jump well before the panic ensues.

first responder status, check...

venturen's picture

it is the opposite of "suppository" goes in the same place but doesn't feel as good

Monetas's picture
Monetas (not verified) venturen Feb 19, 2016 8:54 AM

Bacteria passes the Fecal/Rectum Blood Barrier with great difficulty .... smallish viruses sail right through .... the rectum is an exit function .... not an entrance .... Public Health Science 101 ?

JRobby's picture

They missed the chapter on stagflation because they think rising oil has to be the culprit. This time it is rising debt.

Insurrexion's picture



Transitory: a transgender member of the Tory party in Britain with spell check on their fucking computer.

Kefeer's picture

Nice how the narratives on fake numbers decide FED policy.


Imagine if they added food and fuel; my electric and gas bills are the same, which means they are more since energy commodities are down.  Only gasoline is cheaper and I don't use enough to make a difference.


Also note that Whole Foods took a hit because many people can't afford the "organic" stuff; as though all food wasn't organic.

JRobby's picture

Tea Party in Wonderland

two hoots's picture

The final earnings push before it all falls apart.  The Fed is trapped and they have trapped the rest of us.   Inflation is currently not affordable. 

lester1's picture

So will GDP be adjusted to show a recession ??

Monetas's picture
Monetas (not verified) Feb 19, 2016 8:49 AM

Common Core Consumer Price Index Finger ?

iggenFlot's picture
iggenFlot (not verified) Feb 19, 2016 8:57 AM

This is starting to feel like Weimar Germany. Already I see my favorite Campbell's soup is up 2 cents a can. Two friggin cents! Now, where the fuck is that gonna come from? Where???

LawsofPhysics's picture

Yes, especially when you multiply that 2 cents by the millions of people on disability and SNAP!

MATH does matter fucknut, in case you missed it, if you have a job you are actually paying for a lot of other people's "cans"...


iggenFlot's picture
iggenFlot (not verified) LawsofPhysics Feb 19, 2016 9:29 AM

Yikes! Gold is rocketing higher on this inflation number. Going to shelter in place. My hand is shaking like a goddamn leaf!

LawsofPhysics's picture

Do whatever you want, while you are still free to do so.

slightlyskeptical's picture

Bullshit. No one is paying for all these entitlements, and no one will ever pay for them. Taxes collected only cover all non entitlement governement spending. The debt we have will never be paid off. So all of you who claim you are paying for this stuff can just stick it up your asses, because in reality you are NOT paying for it. Stupid fucks.

LawsofPhysics's picture

Okay, then that means we are going to experience Global Weimar?  So, basically you are saying hyperinflation and world war!

Tjeff1's picture

We are paying for them, not directly.   But in a much lower standard of living than would be present if we had a free market and not so much of an entitlement system.

adanata's picture

SS... We're all "paying for it". There is no "debt" man... it's ALL a scam; worthless digits on worthless pieces of paper. They're just fucking with us... pay the protection money to the bag man [IRS] workin' for the Fed or we'll take it all and throw your ass in jail. Like taking candy from a baby... unfortunately.

cheech_wizard's picture

Math has always been hard for you, hasn't it?

Morning brainteaser: What's the most amount of change (U.S. currency) one can have in their pocket and still not be able to make change for a dollar?


Arnold's picture

The cost of food should send Jenny Craig into the crapper.

Shoeshine boy tip #5, gov.

No, I can't break a fiver, gov.



yogibear's picture

Too many government entitlements for the government and the Fed to acknowlege inflation.

The inflation rate could be 50% per year and the government's CPI would report it as 2%/year.

Government stats and the Fed are so full of it.

Time to look at the real world inflation and protect yourself.

Everywhere I go to there is inflation. Just last year McD's burger was $1.89, 3 months later it's $2.20.

LawsofPhysics's picture

Good, no excuse not to keep raising rates then!!!!  Moar inflation!


MalteseFalcon's picture

As long as gold threatens, rates go up.

Yeah, I know, then lots of bad things happen.

Not to them though.

GRDguy's picture

By government's own chart, ground beef has more than doubled since 2010.


Resolves problem by recommending TWO boxes of Hamberger Helper instead of one.

JRobby's picture

"Clark, you get plenty of meat at home"

Arnold's picture
Reduction of CME Livestock Trading Hours

Based on customer requests, CME Livestock futures and options trading hours will be reduced to align with the period of greatest liquidity in these markets. During 2015, roughly 87% of daily Livestock futures and options trades occurred during the proposed hours.

Effective Monday, 29 February, and pending CFTC approval, the proposed trading hours for Live Cattle, Feeder Cattle and Lean Hog futures and options will be as follows:

  • CME Globex futures and options: 8:30 a.m. to 1:05 p.m. Central Time (CT) Monday to Friday 
  • Open outcry options: 8:30 a.m. to 1:02 p.m. CT Monday to Friday

The daily settlement period and procedures for CME Livestock contracts will remain unchanged.