US December CPI +2.3% vs +2.4% y/y expected


December 2019 US CPI:

  • Prior was +2.1%
  • Ex food and energy +2.3% y/y vs +2.3% y/y expected

Month-over-month numbers:

  • +0.1% vs +0.2% exp
  • Ex food and energy +0.1% vs +0.2% exp


  • Real avg weekly earnings 0.0% y/y vs +0.8% prior
  • Real avg hourly earnings +0.6% vs +1.1% prior

The wage numbers are depressing but there appears to be more seasonal hiring that isn’t being picked up by seasonal adjustments so that might be transitory. Either way a jobs market that isn’t producing wage gains isn’t tight and that will keep the Fed on the sidelines.

The US dollar ticked slightly lower on the headlines and gold edged higher but the moves have been small.


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