Consumer Prices Accelerate As Apparel, Car Insurance Costs Jump

January's Core CPI spiked rates over 12bps but since then they have fallen back to almost unchanged and rallied into today's February print, suggesting a miss.

However, February CPI printed higher than January, rising 2.2% YoY as expected. However, Core CPI slowed from January to 1.8% (es expected). Drops in new and used vehicles, food, and fuel prices helped steady the consumer cost rise.

Under the hood, subcomponents show a very mixed message...

The index for all items less food and energy increased 0.2 percent in February. The shelter index increased 0.2 percent, with the indexes for rent and owners' equivalent rent both rising 0.2 percent and the index for lodging away from home unchanged.

The apparel index continued to rise, increasing 1.5 percent in February following a 1.7-percent rise in January. The index for motor vehicle insurance also continued to increase sharply, rising 1.7 percent in February.

The index for household furnishings and operations rose 0.3 percent in February. The education index increased 0.2 percent, as did the index for personal care. The indexes for alcoholic beverages and tobacco also increased in February.

Notably, looking at next month, the annual growth rate of core CPI will mechanically rise by around 20bps in the March data release just from annualizing the -10% decline in wireless  telephone services. This should help core CPI to exceed +2.0% yoy in March.

Finally, we note that 10Y Treasury yields are 2bps higher than before the January CPI print that spiked rates 12bps higher...


kralizec Tue, 03/13/2018 - 08:41 Permalink

Maybe the US needs to merge banking and insurance schemes too...


ETA - Guess I have to libtard-proof my post





  1. the use of irony to mock or convey contempt.
RedBaron616 ???ö? Tue, 03/13/2018 - 09:32 Permalink

After decades, I kissed GEICO goodbye. Had a claim and their adjustor was non-responsive. I had to contact him all the time to keep things moving. Switched to Erie and saved a couple hundred dollars. One would think being decades with an insurance company and having hardly any claims (last one was hail) that I would be getting the lowest rate. Think again. I had GEICO calling me afterwards saying they could lower my rate. Too late. Should have done that long, long ago. Buffett can keep GEICO. They advertise better than they perform.

In reply to by ???ö?

LawsofPhysics Tue, 03/13/2018 - 08:42 Permalink

The real cost of living has (like the population) been increasing in an exponential manner. The owners of the Fed know this. This is why they will continue to steal real assets and all the products of your labor so long as you continue to accept the "money" they create with no real work, no real risk, and no new collateral requirements!

Even better, all you stupid fucks are paying them interest on this money!!!


"Full Faith and Credit"

same as it ever was!

tion LawsofPhysics Tue, 03/13/2018 - 09:41 Permalink

>The real question is what happens once we hit that event horizon?

The fiat trade deficits close.. value for value.


I haven’t looked in for an update but am unaware of any apparel or fabric producer filing a petition with the USITC as of yet. May be a long while off yet and it seems a little more likely to me that it may be one of the OG fabric mills with some spunk left that gets the ball rolling. If you can believe it we actually have some mills that have been hanging on for dear life all these years. Prices for goods in these categories could have very steep price increases, it will be important for manufacturers to look for ways to aggressively cut out the price multiplying intermediaries standing between them and their customers. There is a vast number of jobs that could be clawed back into the country in this sector though. Community colleges could provide quick and affordable training programs. And then there is the potential for increased profits in domestic fiber farming. Sheep and cotton plants are both kinda cute.

In reply to by LawsofPhysics

spastic_colon Tue, 03/13/2018 - 08:43 Permalink

the most engineered measure in the much so that I dont even care what it says, I'm still not going to spend any more based on this nonsense; all it does is allow the central banks to keep up the theft.

Oldwood spastic_colon Tue, 03/13/2018 - 09:02 Permalink

Numbers are irrelevant unless they are on YOUR balance sheet. 

Our economy is a construct based upon perceptions and speculation on the future. Everything is driven by these perceptions and those perceptions are what sets every action of government and business. Marketing, propaganda, manipulation, fear and greed.

Simply​ look at the FACT that Americans have willingly and greedily given away our own industries and jobs for the love of cheap CRAP, and it IS crap if we look at any landfill, and we will blame government and business for making it easy.

In reply to by spastic_colon

Sonny Brakes Tue, 03/13/2018 - 08:48 Permalink

Prices can jump as high as they want to raise them it doesn't change the fact that consumers are mostly broke. Without credit, there'd be an economic holocaust.

Riddle me this Batman, why is it illegal to counterfeit, but okay for Amazon and Walmart to issue credit cards. Isn't a credit card a workaround for counterfeiting?  

JibjeResearch RedBaron616 Tue, 03/13/2018 - 10:09 Permalink

I'm not surprised. 

Just have some cryptos because it's the only way to defeat China's P-G Yuan standard.

1. 2013, Intel/AMD not selling chips to China.  I'm right.  China has its own chips and in 5 years or so that chip (dirt cheap chips) will compete with Intel/AMD chips on the global market.

2. 2011, One Belt One Road (now BRI), I'm right.  I saw it.  And right now, we don't have a clue on how to defense against it.  Hurray... our MAGA/US MIC.

3. Broadcom/Qualcomm issues.  In 5 to 10 years, Singapore (or Asians) will have its own 5G chips and will compete with our chip.  I'll bet that I am right on this too.

But none of those things directly affect me.  In fact, I'll take full advantage of it.


In 2025, the 5G Network- IoT- Blockchain will rule our communication infrastructure. Cryptocurrencies will be a method of payment, the beginning of formal payment for cryptos.  I'll bet I'm right.  I got cryptos.


In reply to by RedBaron616

monopoly Tue, 03/13/2018 - 09:08 Permalink

Back in the day we had to put 20% down to buy a house, with interest rates at a nominal 5-5.5% and at least 20% to buy a car or small truck. Can you even imagine how the US economy would implode if we were ever back at those moderate levels. There would be no economy. It would a tsunami that would create a depression. And we all know, at some point the piper will be paid.

Great job Greenspan, Bernanke and Grandma Yellen. And not one of them is incarcerated.

aliens is here Tue, 03/13/2018 - 09:12 Permalink

My car/homeowner insurance goes up even when I file no claim. I call my insurance rep and he said the rates increase goes up on everyone because of the natural disaster claims. I don't like it at all.