Mish:
Not only was the CPI tame, but the BLS revised December from a reported 0.4% to 0.2% month-over-month and the CPI excluding food and energy from 0.1% to 0.0%.
The December numbers revised to zero. Most of the price hikes were energy related due to the decline in dollar which is anti-symmetric to oil prices. Domestic produced terms are much closer to zero, the rise in prices mostly due to energy related items or imports.
The declining dollar,which took back all the recent gains today, is driving the ten year up, though it was down today. The driver, in essence, is the dollar trade weighted value. The ten year is son to return back close to 1.2% yield.
The BE#A cannot get a good measure of recent price changes because we do not shop that often. Note the collapse in velocities.
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