US CPI response, with core surprising to the topside the November FOMC is very much liveA response to Wednesday's US CPI report, the headline was unremarkable but the core rate jumped to a faster rise than was expected (there's a but on this, I'll come to that in a moment). ICYMI:
As for the 'but' on that +0.3% m/m core results, in their response piece Bank of Montreal point out that:
- on an unrounded basis the print was 0.278% m/m. This brought the YoY pace to its lowest level since September 2021 at 4.3% from 4.7% - matching forecasts.
Bolding is mine. Yes, hotter than expected but not by as much as the +0.3% would suggest.
BoM go on to note that the strength in the ex-shelter & rent measures. And :
- the 0.278% MoM core print was close enough to what the market was looking for that the data represents more of the passing of an event risk rather than a macro game changer.
- The Fed won't be hiking next week, but ... November is still very much a "live" rate decision.
This article was written by Eamonn Sheridan at www.forexlive.com.
Source: US CPI response, with core surprising to the topside the November FOMC is very much live (https://www.forexlive.com/news/us-cpi-response-with-core-surprising-to-the-topside-the-november-fomc-is-very-much-live-20230913/)
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