US:  Inflation should continue to steadily trend upward - Wells Fargo

Analysts at Wells Fargo, expected the CPI reading next Thursday to show an increase of 0.2% (month-over-month)

Key Quotes: 

“Consumer prices rose 0.2% in August, coming in slightly below market expectations. Over the past 12 months, inflation has now moderated to 2.7% alongside easing energy prices. Core inflation increased a modest 0.1%, but followed a strong reading in July. Core goods prices fell for the first time in three months, as apparel prices fell 1.6%, reflecting renewed downward pressure on core goods prices owed to recent dollar appreciation. Core services inflation softened during the month to 0.2%.”

“We maintain our view that inflation should continue to steadily trend upward. The current inflation environment remains in-line with Fed expectations as core inflation has gradually moved up to the FOMC’s target. However, there is little indication that inflation will accelerate and force the Fed to raise rates sharply.”