US: Headline inflation to remain unchanged at 1.7% aided by increase in energy prices - TDS

Previewing Wednesday's inflation report from the United States, "We look for headline inflation to remain unchanged at 1.7% y/y in October (0.3% m/m), partly aided by an increase in energy prices," said TD Securities analysts.

Key quotes

"In effect, we expect a 1% jump in gasoline prices to support inflation in the non-core segment."

"Conversely, core inflation should decline a tenth to 2.3% y/y, reflecting a 0.2% m/m advance. We expect core goods inflation to recover m/m, but for core services inflation to slow moderately to 0.2% m/m after four straight increases at 0.3%. We anticipate OER to advance at 0.2% m/m, following a 0.3% monthly gain, and also for the ex-shelter segment to slow modestly on a monthly basis."