Consumer prices stable, real earnings stagnant

On a seasonally adjusted basis, CPI-U increased 0.3 percent in January after declining in each of the three previous months. Prices for all items less food and energy (core-CPI) rose 0.2 percent in January. This non-deflationary report is good news. (Good)

Real average weekly earnings fell by a mere 0.1 percent from December to January. A 0.3 percent increase in average hourly earnings was offset by a 0.3 percent increase in the CPI-W. Average weekly hours were unchanged. In the context of recent reports in which deflationary price movements offset shrinking workweeks, this is, at worst, a neutral report. (Neutral)

After recording these two signals, the GNI stands at 25 percent for February, with only a couple more reports to go.