"What's the Upcoming Date for the Consumer Price Index Report?"
The much-anticipated Consumer Price Index (CPI) report for August 2025 is set to be released on Tuesday, September 11, 2025, at 8:30 AM Eastern Time by the Bureau of Labor Statistics (BLS). This monthly report offers valuable insights into the changes in the prices of a basket of goods and services, serving as a crucial indicator of inflation.
The CPI report is divided into two main categories: headline CPI, which represents overall inflation, and core CPI, which excludes volatile food and energy prices. The weight for an item in the CPI is derived from reported expenditures on that item as estimated by the Consumer Expenditure Survey.
Data for rents is collected from approximately 50,000 landlords or tenants, while price data for the CPI is gathered over the course of the month in 75 urban areas throughout the country and from about 23,000 retail and service establishments.
As we await the August 2025 CPI report, consensus estimates predict a 0.3% gain in core prices, which would take the annual rate to 3.0%. This potential increase has sparked discussions within the financial markets, with some analysts suggesting that if the consensus number is confirmed, it will add to calls for the Federal Reserve to consider adjusting its monetary policy.
The Federal Reserve has been pursuing an aggressive campaign of interest rate hikes, a move not seen since the late Carter and early Reagan administrations. However, the central bank has been reluctant to reduce the federal funds rate due to the implementation of price-raising tariffs and a resilient labor market.
The Fed's preferred inflation gauge is the Personal Consumption Expenditures Price Index (PCE), and the central bank sets its long-term 2% target based on data from this index. The PCE index is considered more suitable for formulating monetary policy by the Fed.
Despite the anticipated increase in core CPI, the odds of a September rate cut shot up following the July jobs report, with CME FedWatch now indicating an 87% probability. However, the Fed has remained cautious, keeping the federal funds rate unchanged for a fifth straight time in July.
The next CPI report will provide valuable insights into the current state of inflation in the United States and may influence the Federal Reserve's future monetary policy decisions. Stay tuned for the release of the August 2025 CPI report on September 11, 2025.
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Investors are closely watching the upcoming CPI report for potential implications on monetary policies, with consensus expectations indicate a 0.3% increase in core prices. This discrepancy between the anticipated rise and the Fed's previous cautious stance towards interest rate adjustments might spur discussions about the Federal Reserve considering an adjustment in its monetary policy.
Given the impact of the CPI report on the financial markets and the Fed's decision-making process, various financial analysts may redirect their investments based on the outcome of this report.