February 10, 2023

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

CPI Angst

Please click here for a chart of services Consumer Price Index (CPI) less shelter.

Note the following:

• The chart shows that services CPI less shelter has come down on a month-over-month basis.
• The Fed is most concerned about services CPI less shelter for the following reasons:
  • The consumer is on a binge to consume services.
  • Job growth in services is very strong.
  • Wage hikes in services are proving to be sticky.
• Cleveland Fed’s model is predicting January Core CPI at 0.46% month-over-month and headline CPI at 0.63% month-over-month.