Oil Prices and Inflation: What’s Next for 2015?

Summary

Downward Revision to Inflation Figures but Qualitative Assessment Unchanged. Oil prices weighed on CPI inflation in November for the fifth consecutive month, with headline and core CPI down to 1.3% and 1.7% YoY, respectively. Headline and core CPI are expected to average 1.7% and 1.8%, respectively, in 2014. Fed will certainly discuss falling inflation expectations but we do not expect any immediate change to projections for the timing of the first rate hike

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