US CPI/PPI - 2024-02-12

A huge miss. We're disappointed, markets are disappointed (even though markets were expecting less than we were to begin with). Housing is a big culprit -- it's high and accelerating, and as of this year's new weightings announced today it has a bigger influence (it's also the most ridiculously laggy component). We still get one more CPI before the March FOMC, but at this point hard to see how it could be good enough to drive the first rate cut then.