CPI higher than expected

Although the CPI is highly manipulated figure to the point that it is totally untrustworthy and useless, the fact even with all this manipulation, it fails to drop as much as expected might be a sign that the deflationists are wrong and that inflation will shoot up in the short- to mid-term (with all the disastrous consequences that come with it).

Wait & See.

WSJ:

The consumer price index dropped 0.7% in December on a seasonally adjusted basis compared to the previous month, the Labor Department said Friday, after falling at a record pace in November. Economists had expected a 0.8% decline.

PS: I will wait to see if Mish (deflationist for now) publishes any comment on that.
Update: Mish is more deflationist than ever.