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Core PCE On Track To See Rare Outpacing Of CPI In Jan

US OUTLOOK/OPINION
  • Factoring in the various nuances to the CPI report (not least including how components of medical services are treated), JPMorgan and Morgan Stanley pencil in core PCE estimates of 0.44 and 0.48% M/M respectively after 0.30% in Dec, as usual to be updated after additional source data with the PPI release (Feb 16 PPI, Feb 24 PCE).
  • That would be an unusual month with core PCE exceeding CPI, touching its equal fastest pace since September.

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