US: CPI inflation remained subdued on low food prices - Nomura

Analysts at Nomura note that US consumer price index (CPI) inflation edged up by 0.1pp to 1.9% y-o-y in June (Consensus and Nomura: 1.9%), slightly lower than the average of 2.0% over January-May (2017: 1.6%).

Key Quotes

“The rise in headline CPI inflation was mainly driven by food price inflation, which rebounded by 0.2pp to 0.3% y-o-y in June; while non-food price inflation was unchanged from May at 2.2% y-o-y.”

“In month-on-month terms, CPI inflation edged up 0.1pp to -0.1% in June. Food price inflation climbed 0.5pp to -0.8%, from its recent low of -4.2% in March, while non-food price inflation was unchanged.”