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Prices hotter than expected, economy in 'precarious position' with jobs also cooling

On Thursday, data showing the consumer price index for August was published, revealing that inflation rose by 0.4%, surpassing the anticipated increase of 0.3%.
This acceleration follows rising tariffs that increased the effective tariff rate from 2.4% to 17.4% this year, intensifying concerns over stagflation amid trade disruptions.
Core inflation, which excludes food and energy prices, stayed above 3% for a second straight month while food prices rose 0.5% and energy prices increased 0.7%.
Stephen Kates, an analyst at Bankrate, noted that the recent report highlights the fragile state of the U.S. economy following several months of trade challenges, while economist Stephan Weiler from Colorado State University anticipates the Federal Reserve will soon reduce interest rates.
These developments indicate that the Federal Reserve continues to face a challenging balance between controlling inflation and supporting job growth, which restricts its range of policy responses and heightens the risk of worsening stagflation.

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Prices hotter than expected, economy in 'precarious position' with jobs also cooling

The rate of inflation accelerated last month as the yearly inflation measure inched closer to the 3% mark, which it hadn't reached since the start of the year.

2 days ago

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