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.
![us august 2023 cpi preview](https://images.forexlive.com/images/us%20august%202023%20cpi%20preview_id_3563681f-a438-4efa-90de-0d8a0ff3e658_size900.jpg)