German Bank looks ahead to US CPI: expected to not hinder market's rate cut expectations

According to economists at Deutsche Bank, inflation in the United States and the eurozone is expected to stubbornly remain above target levels in the near future. Although the actual inflation rates in August and September have been relatively moderate (today's release of the U.S. CPI and the end-of-month release of the eurozone HICP will show the same situation), these data are not enough to prompt a rapid decline in inflation unless there is a significant change in oil prices. The details of today's U.S. CPI may provide more information, and it is expected that the month-on-month increases in both overall and core CPI will be similar to last month. Last month, the month-on-month rise in overall inflation was 0.15%, and the month-on-month rise in core inflation was 0.17%, both rounded to 0.2%. This time, the forecast is also between 0.1% and 0.2%, and it may tend to be rounded up. Even if the month-on-month increase reaches 0.2%, the annual rate is close to the target of the Federal Reserve, so it will not hinder market expectations of interest rate cuts.