Here Comes Consumer Prices...

Economists polled by Bloomberg are looking for a 0.2% month-over-month (MoM) rise in headline CPI, compared with a 0.5% rise the previous month.

Core CPI (ex-food and energy) is expected to rise 0.2% on the month.

On the year consumer prices are expected to rise 2% and on core CPI is expected to rise 1.7% year-over-year.

Investors watch this number because it is a monthly indicator of inflation and gives us insight into the cost of living. The Fed's preferred measure of inflation however is the personal consumption price index because it reflects what consumers are purchasing.