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Wells Fargo: Exceptional Goods CPI Surge To Continue

US OUTLOOK/OPINION

Wells Fargo analysts are pencilling in +0.4% M/M headline (7.2% Y/Y) and +0.5% core (5.9% Y/Y) for January, which are basically in line with consensus.

  • They see the "exceptional pace" of goods CPI continuing in early 2022, with services set to trend higher as well.
  • "With the supply side of the economy still struggling to keep up with domestic demand and Omicron's emergence exacerbating the issue further, we expect to see the exceptional pace of goods inflation to continue. Services inflation is set to trend higher this year as well, reflecting the lagged pass-through of higher prices for physical inputs and labor."

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