Reuters-polled economists expect US July headline CPI to ease to 3.4% y/y from 3.5%, while core CPI is seen at 3.5% from 2.6%. Core services prices are expected to rise 0.3% m/m after being flat in May-June, leaving the market with a mixed read on inflation.
Matters because: a hot surprise could pressure risk assets, while softer data would support the case for cooling inflation.