Consumer prices rose 0.4% in August, as expected; core inflation was higher than estimated
Core inflation rose 0.3% in August, and markets now see a higher chance the Federal Reserve will raise interest rates next week.
- 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.
128 Articles
128 Articles
Inflation Figures Raise Rate Hike Expectations
Inflation picked up in August, and that keeps the heat on the Federal Reserve. The Labor Department on Friday put the annual inflation rate at 3.4%, matching July and in line with forecasts, as gasoline costs continued to bite, the Wall Street Journal reports. On a monthly basis, inflation...
As pump prices blaze, prices continue to rise, at a rate of 3.4% over a year, which could push the federal bank to raise its own.
Washington, Sep 11 (EFE).- The U.S. Consumer Price Index (CPI) remained at 3.4% in August after consecutive declines in the previous two months, in line with analysts’ forecasts, influenced by a rebound in fuel prices due to the war in Iran. [...] The entry Annual inflation in the U.S. remains at 3.4% in August was first published in HolaNews.
By Elisabeth Buchwald, CNN Consumer prices in the United States rose at an annual rate of 3.4% last month — the same rate as in July — according to the latest Consumer Price Index of the Bureau of Labor Statistics. This data is likely to reinforce the stance in favour of a rise in consumer prices.
The fuel surge reinforces the possibility of a rise in US central bank rates
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