US: Expect headline CPI to have increased 0.3% m/m and 2.5% y/y - Barclays

The Barclays Research Team is out with a brief preview on today’s US inflation report due on the cards at 1330 GMT, with the key focus likely to be on the core figures.

Key Quotes:

“We expect headline CPI to have increased 0.3% m/m and 2.5% y/y. Excluding the volatile food and energy components, we forecast inflation to have risen 0.2% m/m and 2.2% y/y. 

We maintain our view that core CPI will rise gradually to reach 2.5% by the end of 2019 reflecting GDP growth running above potential, labor markets continuing to tighten and wage inflation moving higher modestly.”