Morgan Stanley Research previews the US September CPI report due on Wednesday.

"We forecast core CPI at 0.24% m/m in September (2.5% y/y), five basis points below August's 0.29% increase. We expect core services inflation to decelerate, mainly reflecting a normalization in communication services as the one-off increase in wireless telephone fees does not repeat this month. We forecast still positive core goods inflation, driven by higher vehicle prices and ongoing, albeit modest, pressure from AI-related demand," MS notes.

"We expect headline CPI at 0.62% m/m and 3.69% y/y, reflecting another sizable increase in gasoline prices. Our forecast implies an NSA CPI index of 336.792," MS adds.