TD Securities Forecasts Moderate August Core CPI Increase Led by Services

TD Securities economists project a modest rise in the Core Consumer Price Index (CPI) for August, anticipating a 0.19% month-over-month increase. According to FX Street, this uptick is expected to be driven primarily by gains in the services sector, while core goods are likely to offset some of the inflationary pressures.

The forecasted Core CPI year-over-year rate stands at 2.3%, with the overall Headline CPI remaining steady at 3.4% year-over-year. These projections suggest a continued but controlled inflation environment heading into the late summer period.

For Japanese investors and traders, these inflation expectations in the U.S. remain a key factor influencing currency and equity markets, particularly amid ongoing monetary policy deliberations by the Federal Reserve.