US CPI January 2018 2.1% vs 1.9% exp y/y

January 2018 US CPI and real average earnings report 14 February 2018

Prior 2.1%
Core 1.8% vs 1.7% exp. Prior 1.8%
Real average weekly earnings -0.8% vs -0.3% exp m/m. Prior 0.2%
0.4% vs 0.7% prior y/y
Real average hourly earnings 0.8% vs 0.4% prior y/y

The CPI beat will get the headlines but it’s more a confirmation that it’s not dropping. That’s soothed a market that was waiting for a drop. The wages number looks bad though, with the exception of the hourly number. I think there’s a big over-reaction in the buck here.