U.S. CPI inflation likely to have accelerated 1 pct year-on-year in August

The consumer price index inflation in the U.S. is likely to have accelerated in August, according to Barclays’ updated CPI projection. According to Barclays, the consumer price index is expected to have increased 0.1 percent month-on-month in August and 1 percent year-on-year. The projection for the monthly change in headline consumer price index has changed from a weak 0.2 percent to 0.1 percent rise.

“We forecast core CPI to be up 0.2 percent m/m and 2.2 percent y/y. We forecast the CPI NSA index at 240.7”.

In the updated projections, Barclays has incorporated the latest energy futures prices. The CPI NSA index projection would be broadly unchanged in the next couple of months. The profile is around 0.1 index points higher through to summer 2017 and around 0.1 index points lower for the remainder of 2017, added Barclays.