Energy prices set to slow down CPI in G10's? - Nomura

Analysts at Nomura explained that energy prices are set to contribute negatively to headline CPI in almost all G10 countries in the coming months. 

Key Quotes:

"On a cross-country basis, it is clear that the US and Canada are hit most negatively by base effects going forward. However, with US core CPI tracking above 2% pa, this may be more likely to be overlooked by the market. Base effects are in fact positive in Japan."

"On the other hand, in the eurozone negative base effects are significant, and core inflation remains below 1% pa."

"While we do expect core inflation to pick up through 2017, sharply falling headline inflation prints in the eurozone may cause the market to question ECB tapering expectations. The fact that ECB officials have been directly referencing headline inflation rather than core inflation is also concerning."