FXStreet (Delhi) – Michael Gregory, Deputy Chief Economist at BMO Capital Markets, suggests that the US headline CPI looks to rise 0.1% in December, as falling gasoline prices offset another 0.2% core increase (the fourth consecutive). Key Quotes “However, because gasoline prices plummeted this time last year, the annual change in the CPI is going to double, to 1.0% y/y from 0.5% in November. Core inflation should continue to face upward pressure from shelter costs (reflecting historically low rental vacancy rates) and medical costs (insurance re-pricing). However, these upward pressures are being partly offset by falling import prices (thanks to a strong greenback) and the passthrough of lower energy input costs. The core inflation rate should still creep up a notch to 2.1% y/y in December, the fastest clip in 3½ years.” For more information, read our latest forex news.