Bond yields are unchanged ahead of our first inflation report of 2025. Economists are projecting that prices rose 0.3% in January and that should slow year-over-year growth to 2.8%. Core prices are also expected to rise 0.3% and that should slow year-over-year growth to 3.1%.
Reminder. Friday’s jobs report showed wages jumping 0.5% in January, much more than economists were expecting. This will give us our first look at whether those wages gins translated into higher spending.
Important. Nick Timiraos writes in the Wall Street Journal that this inflation report is especially important. “Not every monthly inflation report is created equally. In an economy with price pressures, January has packed a bigger punch. Price hikes in recent years have been exceptionally strong in the month of January, reflecting outsize turn-of-the-year price resets. The upshot is that inflation reports due this week could show whether the Federal Reserve’s fight to bring inflation down has cleared a key hurdle.”
Report is out at 8:30 AM
