Bank of America Global Research provides a preview for the US December CPI print on Thursday.
"We forecast headline CPI (Consumer price index) fell by 0.1% m/m in December (0.10% m/m unrounded). This would result in the y/y rate falling from 7.1% to 6.4%, and the headline NSA (not seasonally adjusted) index would decrease to 296.751 from 297.711. Meanwhile, we look for core CPI to increase by 0.2% m/m (0.24% unrounded), and for the y/y rate to fall from 6.0% to 5.6%," BofA notes.
"Our outlook for another soft headline print reflects a couple of factors. First, we look for energy prices to drop by 4.7% m/m in December owing to a plunge in retail gasoline prices, which were down 12.7% m/m in according to data from AAA (American Automobile Association). This should drive a decline in energy goods, while energy services are likely to be little changed on the month,"BofA adds.