Friday, January 12, 2018

Hard economic data out on Jan. 12 shows holiday shopping sales miss expectations but price inflation rising

Jan. 12 saw two hard data reports emerge which don't provide good news for the general economy.  In the first report, retail sales for the month of December missed expectations as consumers spent much less this Christmas season than anticipated.

For the fourth year in a row December retail sales numbers (control group) missed expectations. After the shocking 1.4% MoM surge in sales in November, December retail sales growth slowed to just 0.3% MoM. - Zerohedge

This report was soon followed by another important one which showed that consumer prices were higher than expectations, validating that the Fed remains well behind the curve in their attempts to keep up with rapidly rising prices through interest rate hikes.
Following deflationary prints in import prices and producer prices, core consumer prices came in modestly hotter than expected. Core CPI printed +1.8% YoY - highest since April 2017 - as shelter costs re-acclerate. 
The index for all items less food and energy increased 0.3 percent in December, its largest increase since January 2017. 
The recent (silver lining) trend in lower shelter cost growth ended with a modest rise MoM and YoY in both Shelter and Rent inflation... - Zerohedge

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