Weakness of durable Why is U.S. core inflation lower than expect?
The overall CPI performance in the Unit States in December was in line with market expectations, mainly due to the upward trend in oil prices, which phone number list had a shortterm impact on inflation expectations. In December, the overall CPI in the Unit States increas by 0.4% monthonmonth, in line with market expectations. The main reason was the rise in global oil prices in December, which push the US energy CPI to rise sharply monthonmonth in December and may have a lagg impact on core inflation. As the Unit States tightens sanctions on Russia, the current Brent oil price has risen to more than $80 per barrel, but Trump’s support for traditional energy may lead to improv crude oil supply expectations in 2025, which may lead to a decline in oil prices.
Why was US core inflation lower than market expectations in December?
Mainly durable goods, follow by rental inflation. The weakness of US inflation in December was mainly due to core inflation. Looking further, the core nondurable goods and core nonrental services subitems were both stable. The subitems that weaken monthonmonth were mainly durable goods (the monthonmonth impact on CPI fell by 4BP to 0.02% from November) and rent (the impact on CPI fell by 2BP).
1) U.S. durable goods inflation cool in a and the necsary expens to December, and the main factor may be the temporary cooling of consumption. Judging from the retail data, US motor vehicle sales in December increas by 0.7% monthonmonth, a significant drop from November, corresponding to the slowdown in vehicle inflation.
Since the main determinants of durable
Goods consumption are income and interest rates, the recent rise in U.S. Treasury bond yields and a slight slowdown in U.S. residents’ wage growth trust review may cause a slight cooling in durable goods consumption and inflation. However, looking at leading indicators, the Manheim Us Vehicle Price Index points to a possible rebound in U.S. vehicle inflation in the coming months Weakness of durable.
