Morgan Stanley Research previews the US August CPI report due on Friday

"We expect core CPI to rise 0.23% m/m (2.4% y/y), broadly in line with July's 0.22% increase, as core goods inflation moderates following the one-off price increases in Apple electronics. Overall, we believe tariff-related inflation is nearing its end, and therefore expect further normalization in goods prices," MS notes.

"On the services side, we forecast a modest pickup despite softer airfares, largely reflecting a rebound in categories that were unusually weak in July.In particular, we expect stronger readings in hotel prices and household operations, two components that tend to be especially volatile. We expect headline CPI at 0.41%m/m (3.4%y/y), pushed by gasoline prices," MS adds.