Consumer prices rose 0.4% in August, as expected; core inflation was higher than estimated
- 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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Inflation Was 3.4% in August with Gas Prices Still Elevated
“The annual inflation rate remained elevated last month, with Americans still paying high prices for gasoline,” the Wall Street Journal reports. “The inflation rate held steady at 3.4% in August, the Labor Department said Friday. That matched analyst expectations and was even with July’s 3.4%.” “The August inflation reading has big implications for a Federal […]
The consumer price index (CPI) of the United States rose 0.4% in August, after the discharge of 0.1% in July, according to information released this Friday by the Department of Labor of the country. The result came in line with the market projection. Exclusive material for subscribers. To have full access, access the link of the subject and register.
US consumer inflation picks up in August, up 3.4% YoY
In August, consumer prices in the U.S. surged, mainly due to increasing gasoline prices. This trend elevates the likelihood of an interest rate hike by the Federal Reserve, with economists predicting a monthly rise in the consumer price index of 0.4%. When excluding food and energy, the core consumer price index saw a 0.3% rise, leading to a market expectation of a 70% chance for a 25-basis-point hike.
August inflation, which will significantly influence whether the U.S. raises interest rates, remained at a high level similar to the previous month. The Consumer Price Index (CPI) for August, released by the U.S. Bureau of Labor Statistics on the 11th, stood at 3.4% year-on-year. This showed no change from July and aligned with market expectations, including those of economic analysts.
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