The data, CPI for June 2023:
- due at 1230 GMT, which is 8.30 am US Eastern time:
A brief what to expect comment via CIBC:
- Base effects will be behind a sharp drop in the pace of annual headline inflation to 3.1% in the US in June, as surging gasoline prices from a year ago drop out of the calculation. That will leave inflation at the slowest pace since March 2021.
- Excluding food and energy, core price pressures could have also subsided to a pace not seen since late 2021 at 5.0%, with potentially slower inflation in shelter adding to a possible drop in used car prices, in line with industry measures.
- But all eyes will be on the Fed’s preferred measure of underlying prices tied to demand, core services ex. housing, which will provide an indication of how the tight labor market is feeding through to inflation.
Earlier previews: