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US DATA: Core Goods CPI Unexpectedly Decelerates On Apparel, New Cars

US DATA

Looking more closely at the core categories, the big surprise here is that core goods CPI failed to accelerate as much as had been expected, coming in at 0.05% M/M (vs expectations of 0.23% and a deceleration from September's 0.17% reading).

  • That's despite Used Cars - one of the closely watched categories this month - coming in much higher than expected at 2.7% (vs 2.3% median, 0.3% prior).
  • The category appears to have been dragged down by new vehicles (just below zero, vs 0.2% in September), and apparel (more than reversing September's 1.1% spike, with a -1.5% drop). Household furnishing looks to have been a factor as well (-0.1%)
  • These are all volatile categories so shouldn't unduly influence the reading of the report as a whole. Still, this is the first back-to-back rise in core goods CPI since April-May 2023.

 

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Looking more closely at the core categories, the big surprise here is that core goods CPI failed to accelerate as much as had been expected, coming in at 0.05% M/M (vs expectations of 0.23% and a deceleration from September's 0.17% reading).

  • That's despite Used Cars - one of the closely watched categories this month - coming in much higher than expected at 2.7% (vs 2.3% median, 0.3% prior).
  • The category appears to have been dragged down by new vehicles (just below zero, vs 0.2% in September), and apparel (more than reversing September's 1.1% spike, with a -1.5% drop). Household furnishing looks to have been a factor as well (-0.1%)
  • These are all volatile categories so shouldn't unduly influence the reading of the report as a whole. Still, this is the first back-to-back rise in core goods CPI since April-May 2023.