US: CPI to show a 0.2% increase in June - Wells Fargo

On Wednesday, US June CPI is due. Analysts at Wells Fargo, expect the headline (and also the core) to show a rise of 0.2% in line with market consensus. 

Key Quotes: 

“The consumer price index (CPI) rose 0.2 percent in May and is up 2.8 percent year-over-year, boosted in part by higher gasoline prices. Higher core services prices mean that the core index (ex-food and energy) is also exhibiting strength, up 0.2 percent in the month and 2.2 percent over the year. On a 12-month basis, the headline and core are growing at the fastest rate in at least a year.”

“Core services prices rose 0.3 percent in May while core goods declined 0.1 percent for a third consecutive month. This means that all the growth in core CPI is due to the services side, which was supported in April by another solid increase in shelter costs. Core goods prices were weighed down by drops in household furnishings and used auto prices.”

“We expect headline and core CPI to be up another 0.2 percent in June.”