US: Expect headline CPI inflation to moderate to 2.1% y/y in December - TDS
|Analysts at TDS expect US headline CPI inflation to moderate to 2.1% y/y in December, with prices up a seasonally adjusted 0.1% m/m.
Key Quotes
“Energy prices should be a net negative, led by lower gasoline prices but partially offset by higher natural gas prices. We maintain a cautious view on grocery prices, which have declined in the prior four months. Excluding food and energy, we expect core CPI to print a 0.2% m/m increase after disappointing with a weak 0.1% rise in November. Much of the prior month's weakness, notably in hotel prices, airfares, and physician’s services, is likely to reverse. The exception is apparel where we are cautious on expecting a sharp rebound amid intense retail competition.”
“Our forecast suggests core inflation should stabilize at 1.7% y/y. Going forward, USD weakness and rising commodity prices should provide a net tailwind and allow core prices to firm over the course of 2018 though the process is likely to prove gradual.”
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.