A sharper-than-expected drop in U.S. producer prices is bolstering expectations for rate cuts, but with Wednesday's Consumer Price Index on deck, investors will need to brace for a potentially stickier inflation picture.
Economists forecast that the August Consumer Price Index will show headline inflation climbing to 2.9% year-over-year, up from 2.7% in July. If confirmed, that would be the highest annual pace since January 2025.
