Synopsis:

BofA predicts that the August CPI report will reflect continued positive inflation trends. The bank expects a 0.2% month-over-month increase in both headline and core CPI. On a year-over-year basis, headline CPI is projected to drop to 2.6%, while core CPI is anticipated to remain at 3.2%. The headline NSA index is forecasted to be 314.864.

Key Points:

• Monthly CPI Increases:

  • Headline CPI: Expected to rise by 0.2% (0.15% unrounded).
  • Core CPI: Expected to rise by 0.2% (0.21% unrounded).

• Yearly CPI Trends:

  • Headline CPI: Forecasted to decrease to 2.6%, down three-tenths from previous readings.
  • Core CPI: Expected to hold steady at 3.2%.

• Index Forecast:

  • Headline NSA Index: Anticipated to print at 314.864.

Conclusion:

BofA expects the August CPI report to show ongoing positive inflation trends, with both headline and core CPI increasing by 0.2% month-over-month. The yearly headline CPI is projected to decrease slightly to 2.6%, while core CPI remains unchanged at 3.2%.