US: CPI likely to grow by 0.2% - Rabobank

The US CPIs are due at 14:30 CET and the consensus expectation is for a 0.2% rise in both the core and the headline index, which would keep the annual rates unchanged at 2.3% and 2.9% respectively, suggests the research team at Rabobank.

Key Quotes

“The Fed is targeting core PCE inflation, which stood at 1.9% in June, but the CPIs are always a bit more timely. Even though inflation surprises have a bearing on the dollar, this year’s third rate hike in September is already basically a done deal as the hawks have the upper hand in the FOMC. It is hard to see how today’s data release would change any of this.”