Key US CPI preview - Nomura

Analysts at Nomura offered their outlook for the key data release this week for the US in CPI.

Key Quotes:

"We expect headline CPI to increase 0.2% (0.227%) m-o-m in July, pushing up its y-o-y change to 3.0% (2.993%) from 2.9% previously."

"Excluding food and energy prices, we expect a reversal of declines in volatile items to push up July core CPI."

"As a result, we expect a small acceleration of core CPI inflation to 0.3% (0.260%) m-o-m in July from 0.2% (0.162%) previously."

"On a y-o-y basis, our forecast would lead to a 2.3% (2.349%) increase in core CPI."

"Although our rounded forecast for the m-o-m change in core CPI is higher than the market consensus forecast of 0.2%, most of the expected pick-up is due to short-term fluctuations."

"We think that the sustainable pace of core CPI inflation is around 0.18-0.22% m-o-m. Taking into account food and energy prices, our forecast for CPI NSA is 252.112."