US August CPI due today – preview – final piece of the puzzle for the FOMC meeting

<p>The data is due at 8.30 am US Eastern time. </p><p>Preview comments via CIBC:</p><ul><li>August CPI will be the final piece of the puzzle for the Fed ahead of its September meeting</li><li>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. </li><li>We look for service prices to remain firm given solid demand but will be around the pace in recent months. </li><li>Favourable base effects will also help push the 12-month change in core inflation down meaningfully to 4.2%. </li><li>Headline CPI will tick up on higher gasoline prices to 3.5%. </li><li>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.</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.