Here comes CPI ...

The Bureau of Labor Statistics will release the monthly consumer price index (CPI) at 8:30 a.m. ET.

Economists forecast that CPI increased by 0.1% month-on-month in August, and by 0.2% on a 'core' basis that excludes volatile food and energy costs, according to Bloomberg.

Year-on-year, they forecast a 1% increase in the measure of price inflation, and a 2.2% core-CPI increase.

CPI should be up month-on-month from a flat reading in July given softer gasoline and food prices, according to a note previewing the data from TD Securities.

A pickup in shelter costs, which account for nearly a third of the consumer-price basket, should boost the core inflation reading, David Tulk wrote.

Sluggish inflation is one of the main reasons why the Federal Reserve is raising interest rates slowly. The index of personal consumption expenditures, which measures price changes of consumer products and better reflects spending habits, is the Fed's preferred way to gauge inflation.

More to come ...