US headline CPI showed a 0.3% m-o-m increase in December - Nomuras
|Analysts at Nomura note that the US headline CPI showed a 0.3% (0.282%) m-o-m increase in December, matching the market consensus (+0.3%), but a little below Nomura’s forecast of a 0.4% (0.361%) gain.
Key Quotes
“However, on an unrounded basis, CPI NSA was 241.432, falling short of expectations (Consensus: 241.508, Nomura: 241.674). In details, relative to our expectations, non-core components (food and energy prices) were weaker than expected, but core CPI inflation accelerated slightly as we had expected to 0.230% from 0.151%, previously.”
“Overall, despite some weakness in non-core components, the underlying inflation trend appears to be moving broadly in line with our expectation. There is nothing surprising to lead us to alter our medium-term inflation forecast. Based on CPI and PPI, our forecast for core PCE inflation is +0.08% m-om in December, pushing up its y-o-y change rate slightly to 1.7% (1.661%) from 1.6% (1.647%). While there is much uncertainty associated with trade and tax policies under a new administration, we maintain our view that core PCE inflation will pick up, but only at a gradual pace.”
“Core CPI: Excluding food and energy, core CPI increased by 0.2% (0.230%) m-o-m, matching expectations (Consensus: +0.2%, Nomura: +0.215%). Core CPI inflation accelerated from a 0.151% m-o-m in the prior month. The y-o-y core CPI inflation inched up to 2.2% from 2.1%, previously.”
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.