Another upside surprise to US inflation in January, headline CPI hitting 7.5% y/y (mkt 7.3%) from 7.0% in December.  Core meanwhile rose to 6.0% y/y from 5.5% (mkt 5.9%).  This is bad news for the Fed.  Not simply because the level of inflation is so far beyond the target, they still have base effects to lean on later in the year which will draw the headline rate lower.  Indeed, we’re pretty close, if not at, the peak of the actual headline readings.  The worry is the breadth of the pressure we are now seeing.