US: Expect a 0.402% m-o-m increase in headline CPI inflation - Nomura

Dhwani Mehta FXStreet

Analysts at Nomura offer a brief preview on what to expect from today’s US CPI data release due on the cards at 1330 GMT.

Key Quotes:

“For November, core goods prices likely increased modestly, supported by another increase in used vehicle prices partly boosted by hurricane-related demand.

In addition, the recent stabilization of import prices likely contributed to a flattening out of other core goods prices after recent declines.

Core service prices likely increased steadily, albeit at a slightly slower pace than October.

A solid increase in rent inflation combined with a modest uptick in medical care prices likely contributed to a moderate increase in core service prices.

For noncore components, food prices likely increased slightly during the month, supported by a trend-like increase in food away from home prices and we expect a moderate increase in food at home prices, the other subcomponent of food prices.

We expect that CPI's energy prices overall likely rebounded during November, primarily driven by a surge in retail gasoline prices. Altogether, we expect a 0.402% m-o-m increase in headline CPI inflation, corresponding to a 2.2% rate on 12-month basis. Our forecast for CPI NSA is 246.716.“

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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