Here Comes CPI...

The latest consumer price index report is set for release from the BLS at the bottom of the hour.

Expectations are for the report to show inflation was flat month-over-month in September and rose 1.6% on a year-over-year basis.

"Core" inflation, which excludes the cost of food and energy, is expected to rise 0.1% month-over-month and 1.7% year-over-year.

Last month, the CPI report showed headline inflation fell 0.2% month-over-month, but rose 1.7% on a year-over-year basis.

"Core" inflation in August was flat and rose 1.7% year-over-year.

In a note to clients ahead of the report, Ian Shepherdson at Pantheon Macroeconomics said that lower energy costs won't just impact the gasoline part of the CPI reading, but will depress prices for a range of goods and services.

Shepherdson expects headline inflation for September to be flat and rise 0.2% excluding food and gas.