The CITIC Securities Research Report pointed out that the market is awaiting liquidity guidance from the US August CPI report. We expect that the US CPI for August may be “external heat and internal temperature” month-on-month. The correlation between the El Niño incident and retail food price trends in the US is weak, and the impact of the situation in the Middle East on US inflation is even more noteworthy. The upcoming statistical calibration adjustment by the US Bureau of Economic Analysis at the end of this month will cause the PCE price index to be revised by about 15 bps year on year. This will indeed make it slightly easier for the Federal Reserve to achieve its inflation target in the short term, but the impact on market liquidity may be limited.

The CITIC Securities Research Report pointed out that the market is awaiting liquidity guidance from the US August CPI report. We expect that the US CPI for August may be “external heat and internal temperature” month-on-month. The correlation between the El Niño incident and retail food price trends in the US is weak, and the impact of the situation in the Middle East on US inflation is even more noteworthy. The US Bureau of Economic Analysis's upcoming statistical calibration adjustments at the end of this month will cause the PCE price index to be revised by about 15 bps year on year. This will indeed make it slightly easier for the Federal Reserve to achieve its inflation target in the short term, but the impact on market liquidity may be limited.