The US January CPI came in as expected at 0.5% m/m and 6.4% y/y, although this represents an acceleration on the monthly pace seen in November and December last year. The Cleveland Fed’s trimmed mean measure came in at 0.6% m/m, which is also an acceleration on the average monthly increase of 0.4% seen in Q4. At an annual rate, the US trimmed mean is running at a steady 6.6%. The weighted median rose to a new high of 7.1%. The weighted median is just a special case of the trimmed mean with an arbitrary 50% trim. Non-arbitrary trims designed to better capture the persistent component of inflation typically model ... (full story)