Some of it distorted by the government shutdown. Inflation numbers affected by various categories. These are December inflation numbers. Still a bad look for the Fed to be cutting rates when you have the PCE core at 3% for December. That is quite a way from their target.

Right now all we have is the Department of Homeland Security shutdown. That will be folded into the current quarter numbers, but this is a small number of people compared to the fourth quarter. It won't be 1%.