That omelet is now pricy

January CPI rose .5% headline m/o/m and .4% core, both above the estimate of a gain of .3% for each. The y/o/y gains rose to 3% and 3.3% vs 2.9% and 3.2% in the prior month respectively. Food prices jumped .4% m/o/m and 2.5% y/o/y. In particular, ‘food at home’ saw a .5% price gain m/o/m and up 1.9% y/o/y. Egg prices skyrocketed by 15.2% m/o/m and 53% y/o/y, as it’s all over the news as we know. Prices for ‘food away from home’ rose .2% m/o/m and 3.4% y/o/y. Energy prices were up 1.1% m/o/m after a 2.4% m/o/m gain in December driven by a 1.8% price gain for ‘utility gas services’ with the colder weather and higher natural gas prices. Fuel oil prices jumped by 6.2% and gasoline prices were up by 1.8% all in the month alone.

Services inflation ex energy was a culprit here too, rising .5% m/o/m with another .3% rise in owners’ equivalent rent and up 4.6% y/o/y. Rent of Primary Residence was also up .3% m/o/m but its y/o/y rate slowed to 4.2%. That remains above the blended rent gains I’ve seen from the publicly traded multi family REITS of about 2% but also includes single family rentals which are running above that. With regards to the other big component, medical care, prices rose .1% m/o/m and 2.8% y/o/y. Health insurance in particular saw prices up .7% and 4% y/o/y. Please find me a health insurance policy that only costs 4% more than last year.