CIBC Research discusses its reaction to today's US CPI print for the month of February.

"Price pressures were hot in the US in February, as core inflation accelerated to 0.5% m/m, a tick above the consensus expectation. An increase in the pace of housing inflation was a key driver behind that, but other services including recreation, household operations, and airfares added to the momentum," CIBC notes. 

"Adding food and energy back into the mix showed that total prices advanced by 0.4% m/m, in line with the consensus expectation, which included a sizable drop in energy service prices. That left the annual rates at 6.0% and 5.5% for headline and core inflation, respectively, representing a deceleration from the prior month's pace," CIBC adds.