US July CPI Preview: Stocks and Dollar Brace for Key Volatility

The US Bureau of Labor Statistics will release the July Consumer Price Index (CPI) on August 12, at 8:30 a.m. ET.

Market expectations are for a slight decrease in year-over-year CPI growth to 3.4% from 3.5% in June, with core CPI expected to decline further to 2.5% year-over-year from 2.6%

The biggest risk lies in whether energy prices and core services prices can continue to remain moderate, as the recent rebound in oil prices may weaken the inflation-easing effect from the sharp drop in energy prices in June.

JPMorgan's chief US economist Michael Feroli expects the July core CPI to rise by about 0.22% month-on-month, believing this level is not enough to prompt the Federal Reserve to raise rates in September.