US: CPI to post below consensus reading of 0.03% - Goldman Sachs

Kevin Daly, Research Analyst at Goldman Sachs, suggests that they are below consensus for Friday’s US CPI on the headline (GS +0.03%, consensus +0.1%, last -0.1%) and core measure (GS +0.12%, consensus +0.2%, last +0.1%).

Key Quotes

“Core CPI (MoM) has “missed” by a cumulative 50bp since February, resulting in a deceleration of core services inflation. Further declines in 1-year ahead US inflation expectations driven by surprises in the service categories should push down and steepen the term structure of the US$ swap inflation. The US inflation term structure currently looks too flat and we expect a steepening helped by the rebuild of term premium.”