Core US CPI to edge up - RBS

FXStreet (Bali) - RBS expects the core US CPI to edge up from 1.6% y/y to 1.7% in February, matching the consensus.

Key Quotes

"The FOMC revealed at its March meeting that it has increased its concern over the potentially dampening impacts of a stronger USD on export growth and inflation."

"But the FOMC’s March decision also made it clear that the decision on the timing and scope of rate rises will ultimately be dependent on the data."

"We expect the core CPI to edge up from 1.6% y/y to 1.7% in February, matching the consensus."

"The Fed’s preferred measure of inflation is the PCE deflator, but a small increase, or even stability, in core inflation measures may contribute to a sense of reasonable confidence that inflation will rise over time."

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