Market attention this week is centered on inflation data, with plans to release the August CPI inflation report at 8:30 pm Beijing time on Wednesday. Economists generally expect the overall US CPI for August to slow down to 2.6% from July’s 2.9%. This forecast is driven by falling gas prices and stable food prices, both of which contribute to keeping overall inflation under control. If this prediction comes true, the CPI inflation annual rate will reach its lowest since March 2021. Additionally, the core CPI inflation, excluding food and energy prices, is expected to drop to 3.2%. These forecasts align with the Nowcast model estimates provided by the Cleveland Fed. According to the CME “FedWatch” tool, the market anticipates a 70% chance of the Federal Reserve cutting interest rates by 25 basis points in September and a 30% chance of a 50 basis point cut. Should the inflation data unexpectedly decline, the anticipation for a 50 basis point cut could rise. Conversely, if the report matches expectations or even suggests a slight increase in inflation pressure, although it won’t change the market's expectation regarding the Fed’s interest rate adjustment this time, it might weaken any subsequent dovish rhetoric.