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.
- 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.
249 Articles
249 Articles
Economists agree that recent inflation data could encourage the EDF to raise interest rates at its next meeting
Economics Needs a New Approach to Inflation
Four years have passed since the COVID-19 pandemic’s inflation in the wake of the American economy’s reopening hit its peak, and the American business cycle is today in a strange way. Wanting to slow the rise in prices that accompanied the reopening and construction boom, the Biden administration and the Federal Reserve cut social spending and raised interest rates. Nonresidential construction has been falling since late 2023. Residential constr…
The new data showed that the consumer price index (CPI) remained stable in August, but remains considerably high compared to the beginning of the year and well above the Federal Reserve’s long-term target of 2%. In the month-to-month comparison, while the consumer price index (CPI) rose to 0.4% in August, compared to 0.1% between June and July. The publication was preceded by an unusual tension as if the data were perceived as bad, it could prom…
Montana Standard
Consumer price hikes accelerated last month
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.
Inflation Reaccelerates as Energy Shock Tests Fed Resolve
U.S. consumer prices accelerated in August with a 0.4% monthly gain driven heavily by gasoline and energy. Core measures also firmed more than expected, pushing markets to price a near-certain Fed rate hike next week. The 3.4% annual rate remains well above target.
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