US CPI Report This Week: Fed Rate Decision Hangs in the Balance
The upcoming US Consumer Price Index (CPI) report will play a crucial role in determining whether the Federal Reserve raises interest rates at its September policy meeting.
According to economists polled by Reuters, headline consumer inflation is expected to rise 3.4% year over year in August, unchanged from July, while core CPI, which excludes volatile food and energy prices, is expected to ease to 2.4% from 2.5%
The stronger-than-expected August jobs report has revived expectations for tighter monetary policy, with the US economy adding 162,000 jobs last month, nearly three times the forecast.
Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions, said the upcoming release could prove unusually important, as it will confirm whether price pressures are continuing to moderate.