The question here is: Do you take comfort in the step down from January or do you worry that core inflation is still above 3%?
- One month annualized trimmed mean 3.4% vs 5.7% prior
- Six month 3.1% vs 3.0% prior
- 12 month 3.1% vs 3.2% prior
One of the drivers of inflation (and a 5.15% weigh in the index) was a 1.4% m/m rise in ‘other purchased meals’, which highlights how tough it is to eat out.
Other notable components included:
- Physician services +1.8%
- Financial service charges, fees, and commissions +3.5%
- Nonprofit hospitals’ services to households +3.8%
- Government hospitals+3.8%
- Electricity +4.0%
- Motor vehicle maintenance and repair+4.8%
- Other purchased meals +4.1%
- Dental services +5.3%
Note the preponderance of rising health care costs.
Some sources of inflation trimmed out:
- Computer software and accessories +52.6%
- Shoes and other footwear +21.6%
- Net health insurance +15.5%
- Tenant-occupied stationary homes and landlord durables+5.7%