Discerning The Trend Amid The Noise

The latest US inflation figure upset the consensus narrative on disinflation. After a run of resilient US economic data, inflation is now proving resilient. Core inflation in January came in at 0.4% instead of the 0.3% expected. But it was the super core components (services ex property) and property which caused the most surprise by jumping 0.7% and 0.6%. Goods and energy continued to trend lower.