US: PPI to advance 0.3% in December – TDS

Analysts at TD Securities are expecting the US headline PPI to advance 0.3% MoM (1.5% YoY) in December, on the back of a 0.3% MoM increase in core inflation (1.4% YoY).

Key Quotes

“We pencil in core-core inflation (ex food, energy and trade) at 0.2% m/m.”

“Separately, we anticipate some improvement in sentiment following the US-China trade deal to be reflected in an increase in the NY Fed's Empire State manufacturing index to 6 in January from 3.5 in December, which would represent the index's highest level since May. The Fed's Beige Book will also be released.”