Central Banks

US Inflation Data to Bolster Case for Fed Interest-Rate Cut in September

  • Core gauge seen posting smallest two-month rise since August
  • Rents, used cars and auto insurance are key items to watch

The figures will likely show a key gauge of prices, excluding food and energy, advanced just 0.2% in June for the second month in a row.

Photographer: Alex Kraus/Bloomberg

Forecasters expect a monthly report on US consumer prices to show the smallest back-to-back increases in underlying inflation since last summer, adding to the case for a Federal Reserve interest-rate cut in September.

The figures, to be published Thursday by the Bureau of Labor Statistics, will probably show a key gauge of prices excluding food and energy advanced just 0.2% in June for the second month in a row, according to the median estimate in a Bloomberg survey. The broader consumer price index is seen posting a smaller 0.1% increase, thanks in part to lower gas prices.