(NEWSnet) — The consumer price index report comes out Thursday, which is the key gauge that the Federal Reserve uses to measure the inflation rate.

Economists believe we could see a slight increase of 0.2%.

If that assumption is correct, that would be about even with last month and on a year-over-year basis would mark a roughly 3.3% rise.

Core inflation, on the other hand, is not expected to change. That would reflect the slowest pace in almost two years.

If economists are correct, that is further proof that inflation has started to stabilize.

High inflation was a key reason why the Federal Reserve and comparable central banks have been so eager to raise interest rates at such an aggressive level. However, the Fed briefly paused rate hikes but restarted again last month amid some pushback.

Housing is going to be key. Shelter costs make up about 8% of the CPI. Late summer and early fall is the most popular time to move. That means demand for housing seasonally could drive prices a bit higher. As a trend, though, home prices are downturn.

While demand is up, heightened interest rates make many Americans eager to buy a home in a holding pattern until interest rates increase.

Fuel will also take center stage. Energy prices ticked up in July. While they’re up generally in the summer months this was a bit higher than normal.

Crude oil prices surged by 16% in July alone. That could impact not just this month’s report but next month too.

Copyright 2023 NEWSnet. All rights reserved.