The January CPI came in up .4% compared to last month while the core CPI was up .3% (January 2008 CPI Report) – each .1% above Wall Street expectations. Combined with oil’s surge to $100 yesterday, this has put inflation front and center this morning.
Even a positive earnings report from Hewlett Packard (HPQ) doesn’t appear to be helping things.
Markets are down at the open (Dow: -83, S&P: -10, Nasdaq: -10).
UPDATE (Wed 2/20, 8:05am PST): See also Bob Pisani “Inflation Is Back As An Issue” (Wed 2/20, 9:32am EST).