CIBC Research discusses its reaction to today's US CPI report for the month of August.
"Monthly price increases may be cooling, but the annual rate of inflation remains red hot for now. Headline CPI rose by a seasonally adjusted 0.3% in August, a tick below the consensus forecast for a 0.4% gain. However, the annual rate eased only one tick to a still very lofty 5.3%. The slightly softer than anticipated headline reading was the result of an only modest 0.1% monthly gain in prices excluding food and energy (consensus +0.3%)," CIBC notes.
"This supports our forecast that there will be a temporary lull in inflation this fall/winter, before a recovery in demand and some continued supply disruptions see monthly price increases accelerate again in early/mid 2022," CIBC adds.