The data is due at 8.30 am US Eastern time. Preview comments via CIBC:August CPI will be the final piece of the puzzle for the Fed ahead of its Septem
The data is due at 8.30 am US Eastern time.
Preview comments via CIBC:
- August CPI will be the final piece of the puzzle for the Fed ahead of its September meeting
- We expect the last few soft readings to start to form a trend, with core CPI in August expected to come in at a meagre 0.1% m/m as easing supply chains will weigh further on core goods prices.
- We look for service prices to remain firm given solid demand but will be around the pace in recent months.
- Favourable base effects will also help push the 12-month change in core inflation down meaningfully to 4.2%.
- Headline CPI will tick up on higher gasoline prices to 3.5%.
- Given the Fed is sitting in a data dependent position and will continue to weigh risk management considerations heavily, a downside surprise should be slightly bullish for fixed-income markets.
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