CPI Report: Fed Decision Hinges on Core Inflation Reading

The August U.S. Consumer Price Index (CPI) report is out today at 8:30 a.m. ET, and markets are watching closely for clues about the Federal Reserve's next policy decision.

Following the recent Producer Price Index (PPI) rise of 5.4% year over year, Treasury yields have increased, putting pressure on stocks, gold, and cryptocurrencies.

Markets expect headline CPI to remain at 3.4% year over year, unchanged from the previous reading, while core CPI is expected to ease from 2.5% to 2.4%.