August's CPI report will be released on September 13. It is likely to show that inflation is continuing to moderate. We know that the pump price of gasoline fell sharply this month (chart below). We also know that the wholesale price of used cars fell during August, suggesting that the CPI for used cars fell this month (chart below).
These two components of the CPI were among the most rapidly inflating ones earlier this year. There are lots of other components of the CPI that showed signs of moderating over the past couple of months including appliances, clothing, furniture, airfares, lodging away from home, and car rentals.
Rent stands out as the one major component of the CPI that is likely to remain troublesome. Nevertheless, the markets should welcome August's CPI.