US: Focus on CPI today – Nomura
|Analysts at Nomura point out that US core CPI surprised on the upside in January, rising by 0.349% m-o-m, but some of the strength in core CPI inflation in January seemed to be attributable to transitory factors.
Key Quotes
“We expect core CPI inflation to return to a more trend-like increase of 0.2% (0.203%) m-o-m in February, which translates into the y-o-y change of 1.9% (1.879%), slightly up from 1.8% (1.821%) previously. We view the risk to our core CPI forecast as roughly balanced. In the near term, core inflation on a 12-month basis will likely move up by a couple of tenths as the negative impact from a sharp decline in wireless telephone service prices will drop up out of the calculation in March. However, beyond that, we continue to expect core inflation to rise only gradually. As for non-core components, energy prices likely fell slightly by 0.2% m-o-m in February, while food prices appeared to rise modestly by 0.1% m-o-m. Altogether, our forecast for CPI NSA is 249.024.”
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.