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Stock market news live updates: Stocks rally to start the week as investors await CPI report

Alexandra Semenova · Reporter
Mon, September 12, 2022 at 4:04 PM

U.S. stocks kicked the week off higher Monday as Wall Street inched closer to highly-anticipated inflation data this week. ... All eyes are on the August Consumer Price Index (CPI) due out before markets open on Tuesday.

Economists surveyed by Bloomberg expected headline CPI rose 8.1% over the prior year in August, a moderation from an 8.5% increase seen in July. On a month-over-month basis, CPI is expected to show prices fell 0.1% from July to August, primarily due to continued easing in energy prices. If realized, this would mark the first monthly decline since May 2020.

Core CPI, which strips out the volatile food and energy components of the report and is closely tracked by the Fed, is likely to have inched higher in August, rising 6.1% over the same month last year, more than the 5.9% year-on-year increase seen in July.

The reading will likely affirm to investors whether the Federal Reserve raises interest rates by 0.50% or 0.75% at its policy meeting later this month. ... In recent weeks, Fed policymakers have doubled down on the U.S. central bank's commitment to proceeding with restrictive monetary policy for as long as necessary to restore price stability.

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