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USD review

Quotes from RBC Capital Markets:

-USD: We look for a sharp decline of -0.7% m/m in Jan headline CPI. For core prices, we estimate a +0.2% m/m increase, buttressed by the shelter component (but down 0.1%y/y). This could resurrect the "global deflation" narrative that has seemingly gripped the market for the last six months.

-The pushback to this idea, though, is the fact that gasoline prices bottomed toward the end of January and have risen nearly 12% since then.

-Given this, we are already tracking a +1% seasonally adjusted advance in CPI energy for February. This cements the idea that the fall in the rate of headline inflation will prove, in the final analysis, to have been an isolated energy story.

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