CPI preview: Significant chance that core CPI sets a new high, burying hopes of a near-term Fed pivot
Key points:
Despite continued falls in gasoline prices, YoY headline inflation is likely to remain at high levels in September on account of a relatively low prior year comparable.
Core CPI, which is heavily exposed to lagging/smoothed rental data, has a significant likelihood of recording a new YoY peak in September for the current high inflation cycle.
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