US: January CPI preview - Nomura

Dhwani Mehta FXStreet

Analysts at Nomura offer insights on what to expect from the US CPI report due on tap later tonight.

Key Quotes:

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.

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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