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CPI (0830ET) Seen Softening In August

US DATA

U.S. CPI (released at 0830ET/1330BST) should soften in August, with Bloomberg consensus expecting a 0.3% M/M gain following a stronger-than-expected 0.6% increase in July. Gains in energy prices, notably gasoline prices, should prop up headline inflation in August. Core CPI should increase by 0.2% after rising 0.6% in July, marking the third consecutive increase after large declines in the springtime. Nearly all core components are forecast to rise as state lockdowns which sent prices spiralling continue to unwind.

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