Last week was fairly light for major data releases. The highlight was the consumer price index for January. Headline and core inflation were both up 1.4% compared to a year ago. Core was reported as flat compared to December but was up a scant 0.4% on an annualized basis: {chart} Shelter inflation, which is a third of the index (although a smaller portion of the PCE price index) has slowed to a crawl: {chart} The slide in shelter inflation is helping hold down the overall price pressures which in turn ensures the Fed holds rates near zero for the foreseeable future. To be sure, shelter inflation is calculated on the ... (full story)