All rights reservedOn September 13, we’ll receive Consumer Price Index data for August, after broadly encouraging data for the prior two months. It is also worth noting that in recent months, nowcast estimates have tended to overstate actual CPI inflation, despite a relatively robust long-term forecasting record. What The Fed Is Watching ForAside from the overall level of inflation, the Fed will be particularly interested in inflation for services. The Fed is still watching the data closely for trends here, though recent data has been fairly encouraging. Both of these measurement techniques mean that CPI data on shelter costs is slow to follow the latest trend in home prices by at least several months.

Source: Forbes September 10, 2023 17:51 UTC