December core consumer prices rose at a 2.6% annual rate, less than expected

Summary

CNBC's Rick Santelli reviews the December CPI report, noting headline CPI rose 0.3% month over month in line with expectations, while core CPI rose 0.2% month over month and 2.6% year over year, a tenth cooler than expected. He highlights that the non-seasonally-adjusted CPI and core CPI indexes reached all-time highs. Santelli says the Fed is unlikely to hit its 2% target quickly, sees a 2% to 3% inflation range as the new normal, and flags Venezuela-driven lower gasoline prices as an energy disinflation wildcard.

• December headline CPI rose 0.3% month over month, matching expectations.
• Core CPI rose 0.2% month over month, a tenth cooler than expected.
• Year-over-year core CPI was 2.6%, a tenth below expectations.
• Rick Santelli noted both headline and core CPI indexes reached record highs.
• Santelli said the Fed is unlikely to reach its 2% target quickly.
• He sees 2% to 3% inflation, with some metrics at 3%, as the new normal.
• He flagged Venezuela developments as likely to lower gasoline prices.
• Hosts noted the 10-year Treasury yield slipped from 4.20% to 4.16% and stocks liked the data.