Today, Wednesday, investors are awaiting one of the most important data that will influence the Federal Reserve's future interest rate policy, which is the August Consumer Price Index (CPI).
The report, due for release at 15:30 p.m., is expected to show headline inflation at 2.5%, a slowdown compared to July's annual 2.9% increase in prices. On a monthly basis, consumer prices are expected to have risen by 0.2%, the same percentage of monthly increase recorded in July.
On a âcore priceâ basis, which excludes more volatile costs such as food and gas, prices in August are expected to have risen 3.2% over the year, unchanged from the increase seen in July. Economists also expect monthly increases in core prices to remain unchanged, estimating a rise of 0.2%.
Although inflation has eased, it is still above the Federal Reserve's target of 2% on an annual basis. But recent economic data, including a weak labor market, suggest that a rate cut looks almost certain by the Federal Reserve's next monetary policy meeting on September 18.