23 Mar 2015
US February core inflation may register a 0.0% print – Westpac
FXStreet (Barcelona) - The Team at Westpac, previews the US February inflation data release, anticipating headline and core inflation to register a print of 0.1% and 0.0% respectively.
Key Quotes
“The CPI fell for three months running in Nov-Jan as gasoline prices plunged, but in February they rose more than they fell in January so will add to the CPI for the first month since the middle of last year.”
“Food prices rarely fall but the PPI showed steepening declines in wholesale prices between Dec-Feb and food prices were flat in the Jan CPI. Hence they are likely to post a modest fall in Feb.”
“The core CPI’s above trend 0.2% rise in Jan is unlikely to be repeated with apparel prices expected to reverse their 0.3% Jan rise. But auto prices have been flat to lower for several months and may pose upside risk.”
“We expect a subdued Feb inflation outcome of 0.1% headline and 0.0% core.”
Key Quotes
“The CPI fell for three months running in Nov-Jan as gasoline prices plunged, but in February they rose more than they fell in January so will add to the CPI for the first month since the middle of last year.”
“Food prices rarely fall but the PPI showed steepening declines in wholesale prices between Dec-Feb and food prices were flat in the Jan CPI. Hence they are likely to post a modest fall in Feb.”
“The core CPI’s above trend 0.2% rise in Jan is unlikely to be repeated with apparel prices expected to reverse their 0.3% Jan rise. But auto prices have been flat to lower for several months and may pose upside risk.”
“We expect a subdued Feb inflation outcome of 0.1% headline and 0.0% core.”