US CPI preview: Inflation pressure to continue to build in 2017 - Wells Fargo
|Tomorrow will be the busiest day regarding economic data in the US. Reports include inflation, industrial production, and the Beige Book. Analysts from Wells Fargo, expect a 0.3% rise (month over month) in the CPI headline, in line with market consensus and above the 0.2% of November.
Key Quotes:
“The CPI continues to steadily march higher, with the headline up 0.2 percent in November and 1.7 percent over the year. The core inflation measure, which excludes food and energy prices, also rose 0.2 percent in November and is now up 2.1 percent over the year. Higher energy prices have helped stabilize year-over-year growth in headline CPI in recent months, although milder weather exerted some pressure on utility prices in November.”
“Winter weather largely returned in December, which should support the headline reading for the month. With the drag from energy prices dissipating and wages continuing to rise as the labor market tightens further, we expect inflation pressure to continue to build in 2017.”
“Fed officials also anticipate steady progress toward the 2 percent target in the medium term, and market expectations for inflation have risen since the election on anticipation of inflationary policy enacted in the coming year.”
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.