- Prior was +3.0%
- Core CPI 2.6% vs 3.0% expected (prior 3.0%)
This is surprisingly soft but there were some problems collecting the data and this will be met with skepticism. The BLS was assuming that October CPI was zero because of the government shutdown. I think most economists missed this but it was highlighted by UBS, which indicated that it would put a 27 bps downward bias into the report. If you strip that out, it’s right at 3.0%
This article was written by Adam Button at investinglive.com.