US CPI Review: January 2024 (with flash February CPI estimates)

While adjusted core services prices saw another month of elevated growth, the broader disinflationary trend remains intact - particularly for the PCEPI, which is less exposed to lagging rents.

Headline inflation falls to 3.1% YoY

Headline CPI inflation moderated to 3.1% YoY in January, down from 3.4% in December. This marked the lowest rate of headline CPI inflation since June.

Core CPI ekes out a 10th consecutive month of disinflation

While remaining at 3.9% YoY, core CPI inflation managed to eke out a tenth consecutive month of disinflation on a two decimal place basis, with growth falling to 3.86%, from 3.93% in December.