🟠 US January CPI continues to cool down.

- Headline CPI +2.4% YoY, below the forecast of 2.5% and down from 2.7% last month.
- Core #CPI +2.5% YoY, in line with expectations and slightly down from 2.6%.
-> The current level is approaching the lowest in 4 years. The year-over-year decline is still maintained.
Monthly review:
- Headline +0.2% MoM, lower than last month's 0.3%.
- Core +0.3% MoM, up from 0.2% in December.
Nothing notable in the CPI components. The decline mainly comes from falling energy prices; however, gasoline prices have increased nearly 5% since mid-January, so the energy-driven decline may not last in the coming months. Commodity prices +0.010% MoM, almost unchanged.
-> Commodity inflation has nearly been eliminated. Everything still revolves around service prices. Electricity prices in the US are at record highs.
Truflation reports approximately 0.72% YoY, much lower than the headline CPI of 2.4% -> real-time price pressure is decreasing faster than official data.
Once again, this data supports #Fed. The high inflation cycle peaked in 2022 and has almost no chance of returning to high levels. Inflation is considered over; the remaining story is liquidity and the Fed's policy stance during a "everything is fine" period.