US: Core CPI to rise to 2.3% y/y in August – Scotiabank

The Scotiabank analysts offer a sneak peek into what to expect from Thursday’s US August Consumer Price Index (CPI) report, slated for release at 1230 GMT.

Key Quotes:

“Forecast is for headline CPI unchanged at 1.8%. 

Core CPI forecast up to 2.3% y/y.

Since the Fed's preferred core PCE gauge (1.6% y/y in July) tends to undershoot core CPI fairly steadily by several tenths of a percentage point over time, the Fed's efforts to achieve the symmetrical 2% inflation target will be minimally affected.”