, following the release. In effect, this means if there is a big miss, either higher or lower, especially with regards to core CPI . CPI will be released on Wednesday, September 13. Inflation in the US could see a second consecutive rise, as the headline CPI for the month of August is forecasted to rise to 3.6% from 3.2% in July, on a yearly basis.
The core CPI, on the other hand, could likely take a downturn with the possibility of a drop to 4.3% from 4.7% in July, year on year. The reason behind the divergence between headline and core is the sharp rise in Oil prices – which are not included in core – at the same time as other price pressures are easing in the US.“We expect a stronger increase in core inflation in August after two consecutive 0.16% MoM increases, with core CPI rising 0.3% MoM. However, at 0.
The CPI will impact the Federal Reserve’s decision-making ahead of its Federal Open Market Committee meeting next week. If core CPI comes out stronger than expected, the Fed may feel the need to further raise interest