Housing and Core Inflation – It’s Complicated

Housing and Core Inflation – It’s Complicated

Laura Rosner - Market Economics
US Daily Spotlight | 22 Feb 2013 03:15 |

Markets were risk-off on Thursday, as equity markets sold off by more than 0.6% for the second day in a row, while the 10yr Treasury closed the day at 1.98%. Data for the day were unimpressive with jobless claims for the week suggesting only modest improvement in February payroll employment, existing home sales edging marginally higher and the February Philly Fed manufacturing index falling sharply (details of the report were less negative than the headline index implied). Meanwhile, core inflation was slightly stronger than expected in the January CPI report, mainly reflecting a rebound in core goods prices, but also modestly firmer increases in housing costs.