Quotes from Danske Bank:- US PCE core prices will increase a modest 0.10% m/m in Nov which will bring the y/y rate to 1.5%. As was evident in this week's CPI data, the stronger USD and lower energy prices are starting to feed through to core goods prices, which declined 0.4% m/m in the CPI measure. – We expect core inflation to remain relatively modest in coming months, which could be an obstacle for our view that the Fed will deliver the first rate hike in June next year. However, we became a bit less worried about this when listening to Fed Chair Yellen's comments at Wednesday's press conference. – Given the continued decline in energy prices we forecast that headline PCE will decline 0.1% m/m and increase 1.2% y/y.
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