Intractable Inflation

February CPI rose 0.4%, down from 0.5% in January, and is up 6% Y-o-Y, down from 6.4% last month. However, core CPI rose 0.5% in February, up from 0.4% in January and is up 5.5% Y-o-Y, barely down from 5.6% last month. Worse, core services CPI, the Fed’s favorite measure, is up M-o-M for the second month running and is at its highest level since 9/22. Hello rate hike.