Following the softer energy print...>

US DATA PREVIEW: Following the softer energy print in the PPI report, CACIB

economists have lowered their forecast for all-item CPI to rise by 0.5% m/m,

which would translate into a gain of 2.2% y/y. They add "we expect core

inflation to move sideways in the coming months before leaping in March 2018 as

'special factors' fade."

- Danske economists estimate CPI core increased 0.2% m/m (1.8% y/y against 1.7%

y/y in August), which is a bit more than the trend seen over the past half year.

Headline CPI to come out at 0.6% m/m (2.3% y/y against 1.9% y/y in August)

driven by a sharp rise in gasoline prices related to the hurricanes. They add

"if our estimates turn out right, then both CPI and CPI core will be close/above

the 2% target," but note that the FED targets PCE inflation and hence is still

"struggling with low inflation."