The United States will release August CPI data on Wednesday. The market generally expects a monthly increase of 0.2%, the same as in July. If the data meets expectations, this will be the fourth consecutive time that CPI has roughly met the Fed's 2% PCE inflation target.
The impact of this CPI data on the market may be limited. Powell has previously made clear his concerns about the cooling of the job market, and the market focus has shifted from secondary inflation to recession. If the data does not deviate significantly from expectations, the market reaction is expected to be relatively calm.
