US August CPI accelerates to 0.4% month-on-month, unchanged at 3.4% year-on-year
MacroDigital Finance Impact 4
The US Consumer Price Index for August, released on the 11th by the Bureau of Labor Statistics of the US Department of Labor, rose 0.4% from the previous month, accelerating from July's modest 0.1% gain. Year-on-year it rose 3.4%, unchanged from July. The month-on-month increase accelerated as gasoline prices, which had fallen for two consecutive months, turned higher, strengthening expectations that the Federal Reserve will proceed with a rate hike at next week's meeting. Core CPI, which excludes volatile food and energy, rose 0.3% month-on-month, accelerating from 0.2% in July, while year-on-year it rose 2.4%, slowing from 2.5% in July. In the August Producer Price Index released the previous day, some of the key components used to calculate the Personal Consumption Expenditures price index that the Fed watches closely showed sharp gains, and together with the employment report released last week, the data reinforced expectations of a rate hike next week.
