US: No major surprise in core CPI – Nordea Markets

Anders Svendsen, analyst at Nordea Markets, notes that the US core CPI inflation came as per expectations at 2.1% y/y in April, up from 2.0% y/y in March.

Key Quotes

“The monthly change was slightly below expectations at 0.1% m/m, just as headline inflation was slightly below expectations at 2.0% y/y, up from 1.9% y/y in March. In total, no major surprises.”

“We expect core CPI to remain around the current levels just above target in the coming months before moving higher later in the year due to lagged effects of higher wage growth.”

“Disappoints to inflation in the coming months and particularly to the PCE trimmed mean would put pressure on the Fed to cut rates.”