Highest Rent Inflation Since 2007 Sends Core CPI Above Fed's Target For 14th Consecutive Month

US headline inflation rose for a 5th consecutive month, and has not seen a negative print since February, following today's report that CPI in December rose 0.3%, and up 2.1% from a year ago, the highest since June 2014. Both measures came in line with expectations as energy and gas costs rise and rents and medical costs continued to rise.

Energy costs increased 1.5% from a month earlier, as gasoline rose 3%. Food prices were unchanged for a sixth month, however thiw as more than offset by shelter expenses which climbed 0.3%, reflecting a jump in rental costs.

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