GREECE: PDMA cancels next week's bond auction

While almost all major categories of CPI came in above expectations in January, the contribution to the monthly core M/M figure (0.3% M/M, vs 0.0% Dec) saw some sequential slowdowns as well as accelerations.

• We start with core goods inflation, which swung from contributing negative 0.01pp to overall core CPI in December, to a positive 0.07pp contribution in January (a 0.3% M/M rise vs 0.0% in Dec).
• This rise in core goods was entirely accounted for by used vehicles, which posted 2.2% M/M gains, a 20-month high - new car inflation decelerated (0.0% vs 0.4% prior).
• Non-vehicle core goods neither contributed nor added to core CPI in January, but this contrasts with subtracting 0.04pp in December.
• This a particularly unusual outcome since apparel had one of the biggest monthly drops (-1.4% M/M) in its history, and easily the biggest fall since the start of the pandemic in 2020.
• And in addition, household furnishings (a large 3.4% of the CPI basket) saw a second consecutive 0.2% decline.
• Instead it looks like the core goods acceleration was driven by a wide swathe of items. Recreational (1.8% of CPI) and education/communication commodities (0.8% of CPI), alcoholic beverages (0.8% of CPI), and "other goods" (notably personal care products) each entered positive M/M territory after declines in December.

• +5,000 USH5 113-14, buy through 113-13 post time offer at 0922:37ET, DV01 $620,000. The 30Y contract trades 113-14 last (-1-09).

Leader of the conservative Austrian People's Party (ÖVP) Christian Stocker will deliver a statement to the press at 1600CET (1000ET, 1500GMT). This follows the collapse of gov't coalition talks with the far-right Freedom Party of Austria (FPÖ) (see 'AUSTRIA: FPÖ Leader-Coalition Talks Have Failed' 1414GMT). Stocker's statement will be watched for signals on whether he will look to take the mandate to form a gov't from President Alexander van der Bellen. 

• The previous talks between the ÖVP, centre-left Social Democrats and liberal NEOS took place when former Chancellor Karl Nehammer was ÖVP leader. It remains to be seen whether Stocker believes tripartite talks with his involvement could deliver a different result.