Analysts at Nomura offer insights on what to expect from the US CPI report due on tap later tonight.
We expect headline CPI to increase by 0.4% (0.374%) m-o-m (2.3% y-o-y) in January, led by higher energy prices. Excluding food and energy prices, our forecast for core CPI is a trend-like increase of 0.2% (0.157%) m-o-m (2.1% y-o-y), although shelter-related prices pose some downside risks to our core CPI forecast. As for CPI NSA, we expect 242.447.
Excluding non-core components (food and energy prices), our forecast for January core CPI inflation is a 0.2% (0.157%) m-o-m increase (2.1% y-o-y), a slight deceleration from a 0.22% gain in December.
As for service prices, we expect some mean reversion in core service inflation, which showed a strong 0.281% m-o-m increase in December. Among core service prices, incoming information suggests that medical care service prices probably increased solidly.
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 securities. 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 Forex 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.