Friday , 22 November 2024
Home Forex US inflation data due this week: BofA predicts a +0.1% m/m headline CPI, +0.3% m/m core
Forex

US inflation data due this week: BofA predicts a +0.1% m/m headline CPI, +0.3% m/m core

This info comes via eFX.

****

Synopsis:

BofA anticipates a modest rise in both headline and core CPI for September, indicating firm core inflation without immediate cause for concern.

Key Points:

CPI Forecasts:
BofA predicts a 0.1% m/m increase in headline CPI and a 0.3% m/m rise in core CPI. The anticipated decline in energy prices is expected to soften the headline print, while sticky rents and rising used car prices will contribute to a firmer core reading.

Year-over-Year Expectations:
On a year-over-year basis, BofA expects the headline CPI to drop by two-tenths to 2.3%, with core CPI remaining stable at 3.2%. The headline NSA index is projected to print at 314.827.

Core PCE Implications:
Based on these CPI forecasts and trends in inflation for PPI components of PCE, BofA projects core PCE inflation at 0.18% m/m. While this would be a positive result, it does not signal a drastic change in inflation dynamics that would influence the size of the next Fed rate cut.

Conclusion:
BofA suggests that while inflation continues to trend in the right direction, the upcoming CPI report will likely not alter the Fed’s course significantly. The findings support the potential for further rate cuts but do not warrant alarm regarding inflation levels at this time.

***

For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.

***

Earlier:

This article was written by Eamonn Sheridan at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Goldman Sachs sees Brent price upside risks in short term, medium-term skewed to downside

Goldman Sachs: Sees upside risks to Brent prices in short term, with...

NZD has a quick drop

The Reserve Bank of New Zealand embarked on its rate cutting cycle...

PBOC says will prevent ‘one sided’ expectations on yuan

People's Bank of China official says:We will prevent the formation of one-sided...

RBA first cut forecasts from Australia’s 4 biggest banks

Westpac revised their first cut forecast to May from February:Westpac revise its...