Institutional Prospects: U.S. CPI monthly rate in August: the overall CPI is expected to drop by 0.1% in August

The U.S. headline CPI will drop 0.1% month-on-month in August as gasoline and energy prices eased last month, according to consensus economists.

Capital Economics chief U.S. economist Paul Ashworth said that if the forecast is correct and core CPI growth is only 0.2% month-on-month, a 50 basis point hike in U.S. interest rates at a later date is still possible.