February Inflation Rose 0.4%: What Does It Mean For TIPS And I Bonds?
Bonds, Long-Term Horizon, I Bonds, TIPS
Seeking Alpha Analyst Since 2011
I am no longer writing for this site. More details. I will continue to post updates at my site, TipsWatch.com.
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David Enna is a long-time journalist based in Charlotte, N.C. A past recipient of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website. The Tipswatch blog, which launched in April 2011, explores ideas, benefits and cautions about U.S. Series I Bonds and Treasury Inflation-Protected Securities, which David believes are an under-appreciated and under-used investments. David has been investing in TIPS and I Bonds since 1998.
As expected, U.S. inflation surged 0.4% in February, triggered primarily by rising gasoline prices. But the overall February inflation report from the Bureau of Labor Statistics, released this morning, is a bag of mixed messages. One interesting detail is that offers some good-looking data for the next interest-rate adjustment for U.S. Series I Savings Bonds.
The BLS reported that the Consumer Price Index for All Urban Consumers increased 0.4% in February on a seasonally adjusted basis. Over the last 12 months, the all-items index increased 1.7%. Those numbers exactly matched the consensus forecasts.
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