Slower than expected rise in US CPI adds to the case for a sooner, lower terminal rate

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Slower than expected rise in US CPI adds to the case for a sooner, lower terminal rate

<p>The US CPI data is here ICYMI:</p><ul><li><a href="https://www.forexlive.com/news/us-november-cpi-71-yy-vs-73-expected-20221213/" rel="follow" target="_self" class="article-link">US November CPI +7.1% y/y vs +7.3% expected</a></li></ul><p>And the responses have begun to filter in:</p><ul><li><a href="https://www.forexlive.com/centralbank/timiraos-fed-on-track-for-50-bps-tomorrow-but-lower-inflation-could-complicate-5-target-20221213/" rel="follow" target="_self" class="article-link">Timiraos: Fed on track for 50 bps tomorrow but lower inflation could complicate 5% target</a></li></ul><p>This snippet via BMO:</p><ul><li>slower than expected increases in consumer prices on both headline and core measures</li><li>another month of slowing inflation data adds to the case for a sooner arrival at a lower terminal rate</li><li>had we seen an upside surprise in the
inflation data, the case could have been made for a 5.5% or higher
terminal projection, but CPI bolsters the case for the increase in
terminal forecasts to be more measured</li></ul><p>---</p><p><a href="https://images.forexlive.com/images/US%20CPI%20monthly_id_0a52ce96-dca9-4f67-ae6f-e844636da6ff_size775.jpg">https://images.forexlive.com/images/US%20CPI%20monthly_id_0a52ce96-dca9-4f67-ae6f-e844636da6ff_size775.jpg</a></p>

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

Source: Slower than expected rise in US CPI adds to the case for a sooner, lower terminal rate

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