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23 Feb 2015
US inflation could drop below zero – TDS
FXStreet (Edinburgh) - Consumer prices in the US economy are expected to fall into negative territory for the first time since 2009 this week, suggested analysts at TD Securities.
Key Quotes
“US CPI is expected to dip into negative territory in Jan for the first time since Oct 2009, and we’re in line with consensus in looking for a -0.1% Y/Y reading”.
“While core CPI is expected to hold up better, remaining unchanged at 1.6% Y/Y, just the optics of having a negative inflation rate (which media will surely characterize as ‘deflation’), may affect market pricing for Fed rate cuts, although the bigger driver for the week should certainly be Yellen’s testimony”.
Key Quotes
“US CPI is expected to dip into negative territory in Jan for the first time since Oct 2009, and we’re in line with consensus in looking for a -0.1% Y/Y reading”.
“While core CPI is expected to hold up better, remaining unchanged at 1.6% Y/Y, just the optics of having a negative inflation rate (which media will surely characterize as ‘deflation’), may affect market pricing for Fed rate cuts, although the bigger driver for the week should certainly be Yellen’s testimony”.