Anders Svendsen, Research Analyst at Nordea Markets, explains that US core CPI momentum has recovered a little to 0.2% m/m in October after two consecutive months below expectations but is slower than it has been all year.
Key Quotes
“Headline CPI increased 0.3% m/m (Nordea & consensus: 0.3% m/m, September: 0.1% m/m), pushing headline inflation to 2.5%.”
“We continue to expect core inflation readings around the current levels in the next few months – held back by base effects and lagged effects of a stronger USD. Thereafter, we expect core services to pick up with higher wage growth.”
“With this inflation outlook, the Fed is likely to stay its course, aiming for a neutral rate.”
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