US: Focus on import prices and wholesale inventories data – Nomura

Analysts at Nomura note that US top-line import prices increased 0.7% m-o-m in Nov, driven by a sharp increase in petroleum prices.

Key Quotes

“Prices for non-auto imported consumer goods showed only a modest increase of 0.1% m-o-m, while remaining stable on a y-o-y basis. In line with this development, CPI core goods prices excluding apparel products rose in Nov. We expect modest increases in ex-petroleum import prices for Dec (Consensus: +0.1%), which will be available before the Dec CPI report. Note that our Dec CPI forecasts may be subject to revisions based on Dec import prices and PPI data.”

“Wholesale inventories: In the advance estimate by the Census Bureau, wholesale inventories rose strongly by 0.7% m-o-m in Nov, after falling 0.4% in Oct, driven by a strong increase in the stock of nondurable goods. It is possible that the increase was partly driven by fluctuation in energy prices. Consensus expects an unchanged final reading for Nov wholesale inventories.”