US: Core CPI inflation weaker than expected – Nomura

Analysts at Nomura note that the US headline CPI rose only slightly by 0.1% (0.059%) m-o-m in September, below expectations (Nomura: 0.192%, Consensus: 0.2%).

Key Quotes

“Among the non-core components, energy service prices such as electricity (-0.5%) and utility gas services (-1.7%) came in a little weaker, but food prices (0.03%) and gasoline prices (-0.214%) were broadly in line with our expectations.”

“Core CPI inflation came in at 0.1% (+0.116%) m-o-m, below expectations (Nomura: 0.244%, Consensus: 0.2%), driven by a sharp decline in used vehicle prices and a slowdown in homeowners’ equivalent rent inflation.”

“On a y-o-y basis, core CPI inflation remained at 2.2% (2.170%), below expectations (Nomura: 2.304%, Consensus: 2.3%) but essentially unchanged from 2.199% in the previous month.”

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.