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MNI DATA PREVIEW: US Jan. CPI Seen +0.2%, May Weaken After

--Oil Prices Falling During Coronavirus Outbreak
By Ryan Hauser
     U.S. consumer price inflation is expected to rise 0.2% in January to match
the December pace while core prices pick up.
     Core CPI is likely to quicken to 0.2% from December's 0.1%, according to
Bloomberg's survey of estimates. Results of annual revisions to CPI will be also
released by the Bureau of Labor Statistics on Thursday morning.
     Fed chair Jerome Powell told Congress Tuesday that "inflation has been low
and stable but has continued to run below" the Federal Open Market Committee's
2% objective. As a result, the Fed is taking a wait-and-see approach and is not
expected to change interest rates soon.
     Future CPI reports may show weaker price gains. China's coronavirus
outbreak is holding down global commodity prices, and oil has fallen 21% since
the start of the year. Along with weaker demand from China, the Phase One trade
deal's tariff reductions may also create disinflation as soon as they February
CPI report.
     The annual revisions are likely to be minor with changes in different
months mostly offsetting each other over 2019 said Stephen Stanley, chief
economist at Amherst Pierpoint.
--MNI Washington Bureau; +1 202 371 2121; email: ryan.hauser@marketnews.com
[TOPICS: MAUPR$,M$U$$$]

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