US: Core CPI inflation weaker than expected – Nomura

Analysts at Nomura note that the US headline CPI rose only slightly by 0.1% (0.059%) m-o-m in September, below expectations (Nomura: 0.192%, Consensus: 0.2%).

Key Quotes

“Among the non-core components, energy service prices such as electricity (-0.5%) and utility gas services (-1.7%) came in a little weaker, but food prices (0.03%) and gasoline prices (-0.214%) were broadly in line with our expectations.”

“Core CPI inflation came in at 0.1% (+0.116%) m-o-m, below expectations (Nomura: 0.244%, Consensus: 0.2%), driven by a sharp decline in used vehicle prices and a slowdown in homeowners’ equivalent rent inflation.”

“On a y-o-y basis, core CPI inflation remained at 2.2% (2.170%), below expectations (Nomura: 2.304%, Consensus: 2.3%) but essentially unchanged from 2.199% in the previous month.”