December CPI Preview: Snapback From Govt Shutdown Distortions

Economists expect Tuesday's US CPI to snap back in December after Novemberʼs unusually soft reading which was curbed by the government shutdown, with headline CPI seen rising 0.3% M/M, same as core CPI 0.3% M/M. Annual rates are expected to hold at 2.7% Y/Y for both headline and core, remaining below September levels and signalling a continued disinflationary trend.

 Core CPI expectations have a