US CPI expectations? - Nomura

Analysts at Nomura explained that they expect core CPI inflation to accelerate but only moderately to 0.1% (0.129%) m-o-m in June from a 0.063% increase in May  after a series of the weaker-thanexpected readings since March. 

Key Quotes:

"This translates to a 1.723% y-o-y increase. While we do not think that wireless telecom prices would repeat a large drop, we think that some of the recent weakness will continue to weigh on core inflation for some time. 

Among noncore components, energy prices likely declined sharply by 1.4 % m-o-m in June, led by lower gasoline prices. On the other hand, food prices likely continued to rise modestly by 0.3%. Overall, we think headline CPI inched up 0.0% (0.039%) m-o-m. This forecast implies a 1.713% y-o-y increase."