CPI preview: expect a strong rebound? - Nomura

Analysts at Nomura offered their snap-shot preview of the forthcoming and key US CPI data.

Key Quotes:

"We expect a strong rebound of 0.3% (0.271%) m-o-m in core CPI in December (Consensus: 0.2%) following a disappointing reading of 0.117% in the previous month. 

November’s core CPI reading was partially dragged down by an unusually large decline in apparel prices, which we expect to revert in December. Moreover, physicians’ services prices will also likely increase notably in December after an outsized decline in November. 

The strong m-o-m increase in December’s core CPI will likely push up the yo-y rate to 1.8% (1.759%) in December (Consensus: 1.7%), from 1.7% in November. For noncore components, food prices likely increased at a trend-like pace while we expect a decline in energy prices."