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

"Price pressures were red hot in the US in January, as the total CPI rose by 0.5% m/m and core (ex. food and energy) prices advanced by 0.4% m/m. Those were in line with consensus expectations, and left the annual rates a tick slower at 6.4% and 5.6%, respectively. While the headline advance included a rebound in energy prices and an acceleration in food prices, shelter prices were the single largest contributor to the increase. Other categories within core added to price pressures, particularly car insurance, recreation, apparel, and household operations," CIBC notes. 

"The disinflation in core goods prices ended in January, although the 0.1% increase in that group was still tame. Core services rose by a strong 0.5%, with shelter being a main driver, and that resulted in the three-month annualized rate of change in core prices accelerating by three ticks to 4.6%," CIBC adds.