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Core PCE Estimates Similar/Slightly Lower Post-PPI

US DATA
As initially suggested after the PPI data, analysts see core PCE estimates similar to/slightly lower than post-CPI figures. It follows 0.06% M/M for core PCE in Nov.
  • Pantheon: 0.15% M/M
  • GS: 0.17% M/M from 0.20% post-CPI
  • Mizuho: 0.2% M/M - “the report does not change our preliminary following CPI”
  • JPM: 0.21% M/M - “The data from the PPI report didn’t substantially impact our tracking of core PCE inflation”. It had been a rounded 0.2 post-CPI.
  • Wrightson: Borderline between 0.2-0.3% M/M. “This morning’s numbers still suggest to us that both the total and core versions of the PCE price index are likely to round up to gains of 0.3% this month, but our forecasts for both indexes are now closer to the borderline between gains of 0.2% and 0.3%.”

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