Impact of US CPI data to near-term monetary policy outlook should be limited - Nomura ...Middle East

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Impact of US CPI data to near-term monetary policy outlook should be limited - Nomura
The firm expects core consumer price inflation to move up by 0.3% in November, similar to economist estimates, citing a rebound in some of the volatile components that declined in October, including used vehicle prices and airline fares."An expected rebound in monthly core CPI inflation would suggest the disinflation process is bumpy. However, the underlying disinflation trend remains intact, in our view, as new vehicle prices probably continued to decline, reflecting higher sales incentives and tighter credit conditions. Also, rent inflation remained soft... Beyond November, we think credit tightening in auto loan markets and imbalances in rental housing markets are likely to weigh on core

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