US CPI to rise to 1.4% YoY in August

Analysts at Scotiabank offer a sneak peek at what to expect from Friday’s US Consumer Price Index (CPI) release.

Key quotes

“Headline inflation is forecast to rise from 1% YoY in July to 1.4% principally due to forecast month-ago gains in core CPI combined with a mild assist from gasoline prices.”

“Core CPI has risen by 0.6% m/m in seasonally adjusted terms in each of June and July and the reopening effect upon price pressures buoyed by the stimulus is expected to repeat.”