August CPI came in at 0.6% MoM and 3.7% YoY, slightly higher than expectations. Core CPI was 0.3% MoM and 4.3% YoY, also higher than expectations. This is in line with our forecast, driven largely by higher costs for rent, transportation, and energy.

Futures are flat ahead of the open… …with VIX making lower lows on algo trading. Rising inflation, driven largely by YoY comps for energy prices, should make a Fed pause less likely.

continued for members…

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