Following last month’s inflation ‘jolt’ to the marketplace, Core CPI increased 2.3% YoY in Feb – the biggest jump since October 2008 (led by the biggest monthly surge in apparel prices since 2009). Bond & Stock markets are dropping in the news as it corners the Fed further into a hawkish stance, despite the recessionary warning signals screaming from the manufacturing (and increasingly Services) sector.

The Core CPI print has not been higher since October 2008…

CPI Breakdown…

All items less food and energy

 The index for all items less food and energy increased 0.3 percent in February, the same increase as the prior month. The shelter index repeated its January increase of 0.3 percent, with the indexes for rent and for owners’ equivalent rent both increasing 0.3 percent, and the index for lodging away from home rising 0.9 percent. The apparel index rose sharply in February, increasing 1.6 percent, its largest increase since February 2009.The medical care index rose 0.5 percent, the same increase as in January, with the index for prescription drugs rising 0.9 percent and the hospital services index advancing 0.5 percent. The index for motor vehicle insurance increased 0.4 percent in February, the same increase as last month. The index for education rose 0.3 percent. The indexes for new vehicles, used cars and trucks, alcoholic beverages, recreation, and tobacco all increased 0.2 percent in February. The indexes for personal care and for airline fares both edged up 0.1 percent, while the index for household furnishings and operations was unchanged. The communication index was one of the few to decline in February, falling 0.5 percent.

The index for all items less food and energy increased 2.3 percent over the past 12 months, a figure that has been slowly rising since it was 1.7 percent for the 12 months ending May 2015. The index for shelter has risen 3.3 percent over the last year, its largest 12-month increase since the period ending September 2007, and the medical care index has increased 3.5 percent, its largest rise since October 2012.