U.S. core CPI inflation to reach above 2% in 2016

U.S. CPI data indicates the inflationary pressure in the economy has increased. Core inflation was increased by 0.2% month on month and 2.0% year on year in November. 

Core good inflation dropped by 0.2% m/m and 0.6% y/y was offset by rise in core service inflation of 0.3% m/m and 2.9% y/y. Energy and food prices are dropped by 1.3% and a 0.1%  m/m respectively.

"The broad-based acceleration in core services prices suggests that once the impact of the stronger USD and lower commodity prices fades inflation will climb even higher. Thus, we continue to see core CPI inflation above 2% through 2016", says Nordea Bank.