US: Core CPI inflation weaker than expected – Nomura

Sandeep Kanihama FXStreet Contributor

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.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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