SILVER DOWN HARD TODAY... fake!US Jan CPI comes in hot DUE TO...

SILVER DOWN HARD TODAY... fake!
US Jan CPI comes in hot DUE TO SEASONAL CHANGES (just like the recent Non Farm payrolls report for Jan 20240
Forecast to fall from here ...

FROM ZeroHedge

The January report will also incorporate two annual methodological changes to the CPI.

• First, the CPI will feature updated seasonal factors, which the BLS revised last week. The revisions to the seasonal factors were modest, with the monthly pace of CPI inflation revised up by 0.3bps on average in 2023 H2. The revisions boosted month-over-month core CPI inflation by 1.5bp in January 2023, suggesting that a given non-seasonally adjusted reading would be modestly higher on a seasonally-adjusted basis in this month’s report
• Second, this month’s CPI will be calculated using updated weights for 2024. The new weights will likely be somewhat inflationary, as the weight on owners’ equivalent rent—where inflation is likely to remain above overall core inflation—will increase by 0.8pp, while the weight on new and used cars—which have turned deflationary—will decrease by 0.7pp each.