FAO Economics' Robert Brusca said.....>

US DATA REACT: FAO Economics' Robert Brusca said the November CPI reflects "very

mixed inflation as core and headline diverge" as "Diffusion fails to show

inflation & breadth together."

- He adds that "despite headline pop due to energy core trends turn lower In

November. The core annual rate pace is at 1.7% for four months running. Core

commodities prices are still falling. On the month headline diffusion is neutral

at 0.50 while core inflation is weak at 0.39."

- But he noted that "diffusion shows mixed pressures. Headline inflation is

rising due to energy. But diffusion in November is a neutral 0.50 despite the

0.4% mo/mo gain. Diffusion shows inflation gaining (diffusion above 0.50) over

three-months and one year. Diffusion and actual prices are out of step over six

months when diffusion says inflation was less broad based but actual inflation

rose."