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August US Overall Consumer Prices Expected to Rise by 0.4%, Core Prices Up 0.2%

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The US Consumer Price Index is expected to increase by 0.4% in August after a 0.1% gain in July, according to a survey compiled by Bloomberg as of 9:45 am ET.

The year-over-year rate is forecast to stay at 3.4%.

The CPI data are scheduled to be released at 8:30 am ET Friday.

Gasoline prices are expected to rise in August after declines in the previous two months, while food prices are expected to post modest increase after a 0.1% gain in the previous month, according to a Jefferies research note.

The same survey looks for a 0.2% increase in core CPI, excluding the volatile food and energy components, after a 0.2% increase in the previous month. The year-over-year rate is expected to slow to 2.4% from 2.5%.

Price inflation in the owners' equivalent rents and regular rents categories is forecast to rise at slower rates than in the previous month, according to Jefferies. Those two categories combine for nearly one-third of overall CPI and are a key focus for the Federal Reserve.

New vehicle prices are expected to rise modestly but used vehicles prices are expected to decline after gains of 0.1% and 0.4% respectively, in the previous month.

The Federal Reserve's preferred inflation measures for August, the overall and core PCE price readings, are due to be released on Sep 30.

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