US Dec CPI ex-food and energy 1.6% y/y vs 1.7% y/y exp

Highlights of the US December consumer price index report:

• Headline CPI 0.8% vs 0.7% exp
• Prior headline CPI was 1.3%
• Prior ex-food and energy 1.7% y/y

Month-over-month

• Headline CPI -0.4% vs -0.4% exp
• Core 0.0% vs +0.1% exp

A touch on the soft side on the core and a touch on the strong side on headline. Overall, it’s a bit of a worry for the Fed to see inflation so low on the core and argues against removing ‘patience’ at the next FOMC meeting.