Well-Prepared Markets Absorb Signs of Accelerating Inflation
US consumer prices rose by slightly more than forecast in January, but markets are reacting well – suggesting that expectations had climbed and risk had been sufficiently trimmed ahead of the release. According to data published by the Bureau of Labor Statistics this morning, the headline consumer price index rose 6.4% in January from the same period last year, up 0.5% on a month-over-month basis. Economists polled by the major data providers ahead of the release projected a 6.2% annual gain and a 0.5% jump relative to December. A seasonally-adjusted 2.4 percent month-over-month gain in gasoline prices partially offset a...