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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.
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Montana StandardReposted by 
The Press of Atlantic City
The Press of Atlantic CityConsumer 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.
Coverage Details
Total News Sources240
Leaning Left22Leaning Right38Center66Last UpdatedBias Distribution52% Center
Bias Distribution
- 52% of the sources are Center
52% Center
L 18%
C 52%
R 30%
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