Core Consumer Prices Rise Faster Than Expected As Rents Accelerate

Following deflationary prints in import prices and producer prices, core consumer prices came in modestly hotter than expected. Core CPI printed +1.8% YoY - highest since April 2017 - as shelter costs re-acclerate.

Headline SPI rose just 0.1% MoM (as expected) but notable slower than the 0.4% MoM rise in November.

The index for all items less food and energy increased 0.3 percent in December, its largest increase since January 2017.

The recent (silver lining) trend in lower shelter cost growth ended with a modest rise MoM and YoY in both Shelter and Rent inflation...

Along with the shelter index, the indexes for medical care, used cars and trucks, new vehicles, and motor vehicle insurance were among those that increased in December.

The indexes for apparel, airline fares, and tobacco all declined over the month.  


LawsofPhysics Fri, 01/12/2018 - 08:52 Permalink

..but, but, but...  the central bankers/financiers and their puppets in government say that there is "no inflation"...


"Full Faith and Credit"

same as it ever was!!!

Davidduke2000 Fri, 01/12/2018 - 08:54 Permalink

I don't know how they  are going to get to 20% fast enough, they have been lying for years, but now that inflation is moving beyond the 20% they must raise their numbers or face the mobs in the streets.

Fiat Burner Fri, 01/12/2018 - 08:56 Permalink

Cooked inflation (CPI) is 1.8%. That's 0.2% away from the central banking racket's goal of 2.0%. These dumb fuck central bankers really think 0.2% is going to make all the difference? Fucking idiocy. 

Dilluminati J bones Fri, 01/12/2018 - 10:02 Permalink

Deflation will come first, there are different types of debt and interest itself..  

There is a phenomenon called debt-deflation and many people don't really see it or differentiate that and the fisher effect agnostic-ally: as an example many of the fisher arguments are tied with globalism which is in fact fueling and accelerating debt-deflation.

take an current interpretation of

these people would say that the monies are subject to sterilization affects, but in aggregate it is non-the-less deflationary in that the aggregate debt + AI + Robotics + more fuel efficient cars - purchasing power = worker GDP

And then finally you have demographics.. 

There is one fact nobody seems to argue, we need more consumption and GDP but the immigrants don't provide it!  That is why safe money is locking into T-bills on the sales.  

Walmart announces higher wages and more robots, McDonalds pays more and installs kiosk or smart-phone apps, a 13K car gets 38 mpg.. there you go

In reply to by J bones

Dilluminati Fri, 01/12/2018 - 09:45 Permalink

uhmm if I have this correct: if there is say a new property limit on tax deductions of 10K, and you have a rental property, then instead of the tax being a credit in excess of 10K it is now a debit, then who would you imagine that?  

I think if I understand this correctly many rents will go up.. they would have to in the area I live if say you had two rentals and a private residence.  I'm not sure what this will do to real estate, I think as many people will want out of rentals who own and who rent..

But demographics show boomers wanting one segment of the market and millennials another..…

It is 10K and that in my area would be exceeded at a second home.. 

Bigly Fri, 01/12/2018 - 10:01 Permalink

Own your home

 A modestly priced well built one is only subj to ppty tax increases (granted, not good) not whims of rental mkts.  If you stay put you smooth out a lot of uncertainty.

BraceforImpact Fri, 01/12/2018 - 10:07 Permalink

CPI  from what calculation methods? They're notoriously flawed,  and they changed the method again this month. Real inflation is closer to 8%.


Shadow stats does an excellent job

GotGalt Fri, 01/12/2018 - 13:37 Permalink

Auto insurance ... what a scam!  At least in Taxifornia.  Unreal how much they all have been jacking up premiums for this and that.  Even driving a 10yr old standard vehicle with no coverage for the car itself (just liability), premiums are crazy.

Rex Andrus Fri, 01/12/2018 - 14:14 Permalink

Ah, the rentiers, local politicians and merchants are going to fight over who gets to steal the taxes returned by the other thieves and jacked up minimum inflation laws. Minimum wage up 5%? Excellent! The price of everything just went up 5%, nobody else got a 5% raise and the law didn't even go into effect yet! The average wage slave gets 3000 back from the foreign organized criminal IRS subsidiary of the bankster shithole UN? Excellent! State taxes just went up an average of 5000 and the price of everything just went up another 8% and the law didn't even go into effect yet. It's not even lunchtime yet, let's adjourn until April, when we come back to double count our cut of the loot.