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NWM: Maintaining View Of A ‘High’ 0.3% M/M For Core CPI Post Revisions

US OUTLOOK/OPINION
  • After the release of the annual seasonal factor revisions/updated weights, NatWest see a headline CPI gain of 0.404% versus a previous estimate of 0.440%.
  • However, their core CPI estimate remains at a "high" 0.3% (unrounded 0.349%) vs consensus 0.4%.
  • These revisions to their forecast have not changed Y/Y estimates: if correct it will still pull down the headline CPI from 6.5% in Dec to 6.3%, with core moderating from 5.7% Y/Y to 5.5%
  • They think general inflation trends will support a couple more Fed rate hikes (March and May).

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