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US Inflation comment: Small surprise to the upside, but the Fed will not care much (for now)
Today’s CPI prints were close to expectations. Headline CPI came in one tenth above consensus at 0.3% m/m, but that was mostly driven by gasoline and electricity prices. The core measure was thus in line with consensus at 0.2% m/m. Core goods was once again slightly positive on a monthly basis (0.03%), following some months of falling prices, while core services rose at 0.27% m/m. In October, shelter costs (≈56% of core services and ≈33% of total CPI) were surprisingly low at 0.05% m/m, but gained momentum in November at ≈0.3% m/m. We expect shelter costs to rise close to the November figure over the next months as ... (full story)