Pace of US consumer price rises expected to cool in August

US Inflation updates

US consumer prices are expected to have risen at a more moderate pace in August, as policymakers look for signs that inflationary pressures associated with the economic reopening from Covid-19 lockdowns are easing further.

Consensus forecasts compiled by Bloomberg indicate the consumer price index published by the Bureau of Labor Statistics on Tuesday at 8:30am ET is set to rise 5.3 per cent in August from a year ago — just below the roughly 13-year high of 5.4 per cent reported previously.

Month-over-month price gains are also expected to let up again, with an increase of 0.4 per cent pencilled in from July. That is markedly lower than the 0.9 per cent jump reported between May and June and a slight drop-off from the most recent 0.5 per cent rise from June to July.

A similar deceleration is also forecast for “core” CPI, which excludes volatile items such as food…

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