Consumer Prices Heat Up

Higher prices for shelter, medical care, and tobacco fed the stronger-than-expected rise in core CPI, which will keep the Fed focused on inflation

The consumer price index (CPI) rose 0.2% in January, while the core rate (excluding food and energy) rose 0.3%, which is a bit hotter than expected. Those compare to 0.4% and 0.1%, respectively, in December. Treasury prices sank on the bearish inflation news, sending yields higher by a couple of basis points.

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