RSS US November CPI 2.7% y/y versus 2.7% expected

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 RSS US November CPI 2.7% y/y versus 2.7% expected

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Headline CPI:

  • Prior was +2.7% y/y
  • m/m reading at +0.3% vs +0.3% expected
  • Month-over-month unrounded 0.3130% vs 0.2441% prior

Core measures:

  • Core CPI 3.3% vs +3.3% expected
  • Core CPI m/m +0.3% vs +0.3% expected
  • Core unrounded +0.308% vs +0.2800% m/m prior
  • Real weekly earnings +0.3% vs +0.1% prior
  • Core services ex shelter +0.3% vs +0.3% prior
  • Core-CPI services ex-rent/OER +4.2% vs +4.4% prior

Fed pricing for a cut next week was at 85% ahead of the data.

The index for shelter rose 0.3% in November, accounting for nearly forty percent of the monthly all items increase. The Fed believes that's mostly lagged seasonality with real-time numbers lower than this headline. Rents were up 4.4% y/y and owners' equivalent rent was up 4.9%. The item that's stinging US consumers is auto insurance, which was up 12.7% y/y, though the pace of gains appears to be stalling with October CPI down 0.1% and the latest month up 0.1%.

The food index rose 0.4% m/m and that's an item to watch going forward.

USD/JPY has cooled to 152.30 from 152.60 since the release.

This article was written by Adam Button at www.forexlive.com.
 
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