Here's What Today's Adjustments To CPI Seasonals And Weights Mean For Tuesday's CPI Print

While every trader and analyst is laser-focused on the coming Valentine's Day massacre when a closely watched CPI print will mean lots of market pain due to the bimodal distribution of bulls and bears in the market, few seemed to pay much attention to a just as important development today, when the BLS released its annual seasonal adjustment factor recalculation, which - at a time when the smallest move in the CPI is closely scrutinized - not only revises up to five years of data, but which could have a profound impact on Fed policy and, thus, asset prices.

This routine procedure, which the Labor of Department's Bureau of Labor Statistics undertakes every year, covered data from January 2018 through December 2022. The not seasonally adjusted data are not revised.

This is how the BLS covered the announcement earlier: