December CPI -0.1% (unrounded -0.057%) vs...>

US DATA: December CPI -0.1% (unrounded -0.057%) vs -0.2% expected by 

analysts, but still below the flat reading expected by markets, with 

energy prices -3.5%, the largest drop since Feb 2016, on gasoline 

(-7.5%). Ex only energy, CPI would have been +0.2% (+2.1% y/y). Food 

prices +0.4%. 

- Core CPI +0.2% (+0.210% unrounded), as expected, with the 

large owners' equivalent rents category +0.2% and medical care +0.3%, 

but new vehicle prices flat, apparel prices flat, and used vehicle 

prices -0.2%. Recreation commodities surged by 1.3%.

- The y/y rate for headline CPI fell to +1.9% vs +2.2% in November, 

hitting the lowest point since August 2017. The y/y rate for core CPI 

stayed at +2.2%.

- Overall, the data suggests that consumer inflation growth is steady 

just above 2% when the recent sharp declines in energy prices are 

removed.