CPI (February)

Traveling most of the day today, but I do have some posts on the way. Most important datapoint of the day... CPI. Reuters details:

U.S. inflation rose in February on higher gasoline and apparel prices, government data showed on Wednesday, pointing to some pricing power in the recession-hit economy and easing fears of deflation for now.

The Labor Department said its closely watched Consumer Price Index rose 0.4 percent, the biggest monthly gain since last July, after increasing 0.3 percent in
January.

It said about two-thirds of the rise in the headline figure was from the jump in gasoline prices. "The one-time shock from lower commodity prices and stronger dollar late last year has faded. We haven't slipped into a worrisome deflation situation," said Zach Pandl, an economist at Nomura Securities International in New York.

The BLS claims 0.20% CPI year over year, but using their figures and weights, it comes out to 0.5% (used above). The chart shows the only item showing deflationary pressures YoY was transportation (though I don't believe housing is up year over year), yet transportation costs are on the rise MoM due to the rebound in oil.

Source: BLS