US: Core inflation set to remain below target - Westpac
|Analysts at Westpac expect the US headline and core CPI outcomes to be soft in October, with both likely to print at 0.1%.
Key Quotes
“On both a CPI and PCE basis, there is no cause for concern on inflation.”
“September's headline CPI outcome was dominated by Hurricanes Harvey and Irma. Following a 0.4% gain in August (also hurricane affected), prices rose 0.5% in September. That left the annual pace at 2.2%yr.”
“Of the monthly gain, 75% of the increase reportedly came from a surge in gasoline prices after refining operations were heavily impacted by the weather.”
“Abstracting from this factor, inflation pressures remained benign. The core CPI rose by just 0.1%, leaving the annual rate unchanged at 1.7%yr for a fifth consecutive month.”
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