FXstreet.com (San Francisco) - The US Bureau of Labor Statistics is schedule to publish the US consumer price index July report on Wednesday August 15 at 12:30 GMT (8:30 EST). Market expectations are inflation to rise by 1.6% YoY and 0.2% MoM. RBS agrees to the market as far as the bank believes "the CPI could have advanced by 0.2% in July, which would mark the first rise in the headline figure since March.
The RBS Strategist team supports its forecast pointing that "the headline has been dragged down by a slide in the energy index in the second quarter, but energy prices may have risen by 0.8% in July, as seasonally adjusted gasoline prices could have inched up by 1%."
"The slowing in economic growth in the first half of the year may begin to put
some downward pressure on cyclically-sensitive prices (e.g. hotel rates, new and used cars)," continued RBS. "In any case, the headline CPI may have eased further in July, perhaps falling to 1.6%."
"Meanwhile, the core PPI may have cooled to 2.1%," concluded the bank.
The RBS Strategist team supports its forecast pointing that "the headline has been dragged down by a slide in the energy index in the second quarter, but energy prices may have risen by 0.8% in July, as seasonally adjusted gasoline prices could have inched up by 1%."
"The slowing in economic growth in the first half of the year may begin to put
some downward pressure on cyclically-sensitive prices (e.g. hotel rates, new and used cars)," continued RBS. "In any case, the headline CPI may have eased further in July, perhaps falling to 1.6%."
"Meanwhile, the core PPI may have cooled to 2.1%," concluded the bank.
