US December CPI Y/Y +2.7% vs 2.7% expected

• Prior was +2.7%
• CPI M/M +0.3% vs 0.3% expected
• Prior +0.3%
• Core CPI Y/Y +2.6% vs +2.7% expected
• Prior +2.6%
• Core CPI M/M +0.2% vs +0.3% expected
• Prior +0.2%
• US Supercore CPI M/M +0.29% vs +0.35% prior

We have a dovish surprise here as Core CPI figures came on the lower end of the forecasts. The market was pricing 52 bps of easing by year-end but that has increased to 57 bps now.

In the markets, we have of course a classic dovish reaction with US stocks rising, US dollar falling, precious metals increasing gains and US yields dropping.

The data confirms the easing seen in November when the much lower than expected numbers were taken with a pinch of salt due to shutdown related issues.

This article was written by Giuseppe Dellamotta at investinglive.com.