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- Jacob Oubina, a senior U.S. economist at RBC Capital Markets LLC
U.S. month on month consumer prices stagnated in November after declining 0.1 per cent in October, said the Bureau of Labor Statistics on Friday. Prices were little changed as gasoline and food prices dropped, supporting the Federal Reserve view that inflation will remain stable.
"Retailers will be inclined to do more discounting," said Jacob Oubina, a senior U.S. economist at RBC Capital Markets LLC in New York. "Inflation will crest around here. This will give the Fed more comfort in terms of implementing further monetary policy."
This is "an inflation report that leaves the Fed ample cover for any additional monetary policy accommodation they may see warranted in the New Year," said Ian Lyngen, a bond strategist at CRT Capital Group in Stamford, Connecticut.