US consumer prices likely stalled in August

Reflecting a projected 3.5% decline in US seasonally adjusted motor fuel costs, the CPI energy gauge likely fell by 1.6%, retracing a little over one quarter of the 6.2% hike posted over the May -July span. Echoing the reported uptick in wholesale quotes, the CPI food measure probably edged just 0.2% higher during the reference period, a touch above the average rise over the latest 12 months. 

"US Consumer Price Index (CPI) is expected to be unchanged in August, ending a string of consecutive increases going back to February. Softer retail quotes for energy products, combined with yet another modest dip in core commodities prices, probably neutralized modest upticks in food and non-energy services costs last month", says Societe Generale. 

Sans the afore mentioned movements in retail food and energy costs, the core CPI likely climbed by 0.1% higher (0.095% unrounded) for a second straight month. 

"The details of the Bureau of Labor Statistics' report are expected to reveal that lower prices for airline tickets, apparel and autos moderated anticipated increases in medical care and shelter costs. These forecasts would leave the year-to-year growth rates of the overall and core CPIs unchanged at 0.2% and 1.8%, respectively", added Societe Generale.