US: Headline CPI likely to pick up to 1.8% YoY – TD Securities

Sandeep Kanihama FXStreet Contributor

Analysts at TD Securities are looking for the US headline CPI to pick up two tenths to 1.8% y/y (market 1.7%) in July on the back of a solid 0.3% (market 0.3%) monthly print.

Key Quotes

“We expect the non-core segment to be driven by a modest rebound in the energy segment on the back of a 1.5% m/m rise in gasoline prices.”

“Separately, core inflation should remain steady at 2.1% y/y (mkt 2.1%), reflecting a firm 0.2% m/m advance (mkt 0.2%). Core prices should be supported by both a 0.2% m/m increase in core services inflation and new gain in core goods at 0.2%. We anticipate OER to remain largely steady at 0.3% m/m and for the ex-shelter segment to slow marginally on a monthly basis.”

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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