US August CPI Release Puts Fed Rate Hike Decision on the Line

The August US Consumer Price Index (CPI) is set to be released today, providing crucial data ahead of the Federal Reserve's September meeting. This will be the last inflation indicator before the Fed makes its decision on interest rates.

Last week, Fed member Waller indicated that if the August CPI shows continued progress towards lower inflation, he would consider holding rates steady in September. However, if the data comes in hot, he would consider a rate hike.

Forecasters expect headline inflation to rise 0.4% month-over-month and 3.4% year-over-year, while core inflation is predicted to increase by 0.2% month-over-month and 2.4% year-over-year.