U.S. CPI edged up 0.1% in December, with the core up 0.3%
U.S. CPI edged up 0.1% in December, with the core up 0.3%. Prior data are not revised, leaving the November headline rising 0.4% and the ex-food and energy component up 0.1%. The 12-month rate slowed to 2.1% y/y versus 2.2% y/y, but the core accelerated a bit to 1.8% y/y versus 1.7% y/y. Energy prices declined 1.2% versus the 3.9% bounce. Transportation costs dipped 0.2% from 1.9%. Services prices increased 0.3% from 0.2%. Housing costs, including owners' equivalent rent, were up 0.3%. Foods/beverage prices were up 0.1% after an unchanged November print. Apparel remained soft and slid 0.5% after falling 1.3% previously and is now down for four straight months. Tobacco dropped 0.6% from 0.2%. Commodities prices were 0.1% lower versus the prior 0.7% gain. The strength in core prices is likely to weigh on Treasuries.