Consumer prices rose 0.4% in August, as expected; core inflation was higher than estimated
Core inflation rose 0.3% and traders pushed the odds of a Federal Reserve rate hike to 90%, according to CME FedWatch.
- On Friday, the Labor Statistics bureau reported consumer prices rose 0.4% in August, pushing the 12-month inflation rate to 3.4%, matching Dow Jones consensus expectations.
- Gas prices surged 3.9% over the month, driving the increase as the Iran war limited global oil supply, keeping inflation above the Federal Reserve's 2% annual target.
- Core inflation posted a 0.3% monthly gain, running hotter than expected. The 3.4% annual inflation rate still outpaced average worker paychecks, which grew 3.1% over the same period.
- After Fed Chair Kevin Warsh said policymakers' focus should be on rising prices, markets are betting on a rate hike when The Fed meets September 16. The surprise 162,000 jobs added last month bolsters that expectation.
- The Fed also monitors the Personal Consumption Expenditures price index, which remains above the central bank's 2% annual target. This metric signals whether underlying price pressures are easing amid persistent supply shocks.
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August CPI Report Shows Price Hikes Accelerating as Trump Brushes Off Working Families’ Affordability Worries
Today’s Consumer Price Index (CPI) report shows prices rose 0.4% in August and are up 3.4% over the past year. Core prices, which exclude food and energy, rose 0.3% in August alone. Gas prices reached their highest ever recorded for August, and the pressure has not let up, climbing $4.29 per gallon, up 14 cents since hitting a Labor Day record. Diesel surged past $6 per gallon for the first time ever, up more than 70 cents from a month ago, whic…
U.S. consumer inflation picks up in August as gas prices surge | Honolulu Star-Advertiser
WASHINGTON >> U.S. consumer prices accelerated in August, while a key measure of underlying inflation posted its largest increase in four months, reinforcing expectations that the Federal Reserve will raise interest rates next week.
The consumer price index increased by 3.4 per cent year-on-year in August, according to official figures published on Friday, an increase in fuel costs, which was severely felt by households, two months before the mid-term elections.
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