CPI Preview

The U.S. Department of Labor will release the Consumer Price Index (CPI), a gauge of the average price level of a fixed basket of goods and services purchased by consumers, at 8:30 a.m. ET. Consensus estimates for July are for a 0.2 percent increase, with a very narrow range from 0.1 to 0.2 percent, according to Bloomberg News. This compares to a 0.3 percent increase in June.

CPI less the more volatile food and energy components, or core CPI, is expected to show a similar increase of just 0.2 percent, with a slightly wider range of estimates from 0.1 to 0.3 percent.

The yearly core rate came in at 1.8 percent in June, just below the 2 percent target set by the Federal Reserve. A stronger showing this month may push the annual CPI rate to the 2 percent level, providing greater impetus for a Fed rate hike in September. A weaker CPI may give the Fed further room to pause in increasing rates.

In front of the release, S&P 500 futures were showing a loss of 0.3 percent.