Several analysts downplayed the larger-than-expected rise in core consumer prices (0.4%), citing it as the "January effect." Several companies typically raise prices at the start of every year, mainly in the services sector (medical, health insurance, transportation, recreation. etc.) . Yet, that annual price increase is captured in the seasonal factors, which dumbs down the rise. Unadjusted core consumer prices rose 0.6% in January, services less of rental shelter rose 0.9%, and one core measure total less food, energy, shelter, and used cars rose 0.7%. The bottom line is that there is a lot of inflation under the hood or hidden from seasonal factors.
It is too bad that the folks like Krugman don’t listen to you. How did he ever win the Nobel Prize? Drummond Bell