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22 May 2015
US April CPI risks a downward surprise – KBC
FXStreet (Barcelona) - The KBC Bank Research Team expects a further drop in the already low US headline CPI inflation data.
Key Quotes
“In the US, headline CPI inflation remains stubbornly low and even a further drop is expected for April. The consensus is looking for a slowdown in the annual rate of inflation from -0.1% Y/Y to -0.2% Y/Y, while on a monthly basis, CPI is expected to have risen by 0.1% M/M. PPI surprised on the downside and also the early timing of Easter might have limited price increases in April. Therefore we believe that the risks are for a downward surprise. We also see downside risks for core CPI.”
Key Quotes
“In the US, headline CPI inflation remains stubbornly low and even a further drop is expected for April. The consensus is looking for a slowdown in the annual rate of inflation from -0.1% Y/Y to -0.2% Y/Y, while on a monthly basis, CPI is expected to have risen by 0.1% M/M. PPI surprised on the downside and also the early timing of Easter might have limited price increases in April. Therefore we believe that the risks are for a downward surprise. We also see downside risks for core CPI.”