Prior was +3.0%Core CPI 2.6% vs 3.0% expected (prior 3.0%)Core lowest since March 2021Core goods +1.4% y/y OER at +3.4% y/y vs +3.8% prior
This is surprisingly soft but there were some problems collecting the data and this will be met with skepticism. The BLS was assuming that October CPI was zero because of the government shutdown. I think most economists missed this but it was highlighted by UBS, which indicated that it would put a 27 bps downward bias into the report. If you strip that out, it’s right at 3.0%.
There was an initial drop in USD/JPY but it’s quickly rebounded.
This article was written by Adam Button at investinglive.com.