US: Core inflation tending toward target – Westpac

Analysts at Westpac point out that US core inflation (excludes food and energy) printed its strongest increase in 11 months in December as prices rose 0.3%.

Key Quotes

“Price gains were broad based across the sub sectors, with the most significant contributions coming from autos; health and rents. Overall, the December outcome gave further support to the view that the inflation pulse is strengthening. Over the year to December, core prices were up 1.7%yr, headline inflation 2.1%yr.”

“Come January, a similar result is expected, albeit with momentum in core inflation being a little more modest. Core prices are expected by Westpac and the market to rise 0.2%, leaving annual inflation at 1.7%yr. Headline prices are likely to rise 0.4% in the month thanks to strength in energy inflation. Base effects should still see annual headline inflation tick down to 2.0%yr, from 2.1%yr in December.”

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.