News

Preview for the key US CPI data - Nomura

Analysts at Nomura offered a preview for the key US CPI data coming up.

Key Quotes:

"We expect a moderate increase in April CPI. Our forecast for headline CPI inflation is 0.3% (+0.312%) m-o-m which translates into a 2.5% (2.544%) gain on a y-o-y basis. 

As for energy and food components, gasoline prices were up by around 3.0% m-o-m in the month as the driving season started. Food prices likely increased by a modest 0.3% m-o-m, driven by higher prices at both grocery stores and restaurants. Excluding food and energy, we expect core CPI to show a trend-like increase of 0.2% (0.169%) m-o-m in April. 

This would translate to y-o-y core CPI inflation of 2.2% (2.193%), up slightly from 2.1% in March. Our forecast is based on the view that inflation of core goods prices remained weak despite growing concerns over trade disputes and higher commodity prices. 

Core service prices likely continued to increase at a steady pace. Although the lagged effect of the weaker US dollar last year could have pushed up core goods prices, the pass-through of exchange rates to domestic consumer goods prices has been very weak. In terms of y-o-y changes, after March saw positive base effects, the pace of CPI inflation acceleration will likely become more gradual. Our forecast for CPI NSA is 250.745."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.