US headline inflation inched down, but core inflation remains unchanged
US: CPI (Dec): -0.1% m/m as expected (prior: 0%)
- The plunge in gasoline prices partly explains the m/m fall in headline.
- Energy prices, transport have fallen during the month; on the opposite, services remained steady (up by 0.3% m/m) and housing by 0.4% m/m.
- Energy prices have driven trend in headline prices lower, from 2.2% to 1.9% y/y, while core prices remained on a firm trend, unchanged at 2.2% y/y. In this environment, the continued stability of core inflation could give the Fed more room to pause.
France: Business sentiment (Bank of France) (Dec): 103 vs 100 expected (prior: 101)
- Sentiment has slightly rebounded in manufacturing but unchanged on services and construction.
- In manufacturing, sentiment on production, deliveries and orders has improved from past month.
Italy: Industrial production (Nov): -1.6% m/m vs -0.3% expected (prior: -0.1% revised from 0.1%)
- On a y/y basis: -2.6% vs 0.4% expected (prior: 1%)
- Energy prices have increased while consumer goods, capital goods and intermediate goods have declined.
UK: Industrial production (Nov): -0.4% m/m vs 0.2% expected (prior: -0.5% revised from -0.6%)
- On a y/y basis: -1.5% vs -0.7% expected (prior: -0.9% revised from -0.8%)
- Manufacturing production: -0.3% vs 0.4% expected (prior: -0.6% revised from -0.9%); -1.1% y/y vs -0.7% expected (prior: -0.7% revised from -1%).