HomeAnálisis De MercadoForexStronger US CPI reading has kept rate expectations unchanged so far

Stronger US CPI reading has kept rate expectations unchanged so far



The latest US report was a reminder that the fight against inflation will not be easy. We would guess that the most challenging period for the authorities has just begun.

In August, the US CPI rose by 0.6% m/m, taking the annual rate to 3.7%. The latest reading was above the average forecast (3.6%) and accelerated from 3.0% in June and 3.2% in July.

Roughly half of the price rise can be explained by the increase in fuel prices. Since the end of August, exchange-traded oil prices have regained their upward momentum, which could pose a problem for the monetary authorities in the coming months.

The core price index – excluding energy and food – rose by 0.3% m/m after two months of 0.2% growth. The annual rate of increase slowed from 4.7% to 4.3%. Although the annual rate continues to fall, it remains elevated. Core inflation rose by 1.8% over six months. That’s double the average annual rate ten years before the pandemic.

Interestingly, the new release seems to have only reinforced the markets’ view that the Fed is done raising rates. The odds of keeping rates on hold in November rose to 57% from 53% a week earlier, hardly in keeping with the picture painted by the more robust recent inflation data.


Reciba noticias de Vimilin desde Google news


Please enter your comment!
Please enter your name here


BTC price shows ‘textbook’ Wyckoff moves as Bitcoin bulls defend $25K

Bitcoin (BTC) consolidated higher on Sept. 15 as analysis described recent BTC price behavior as “textbook.”Collect this article as an NFT to preserve this moment...

Magic Eden integrates Solana’s compressed NFTs into marketplace

Nonfungible token (NFT) marketplace Magic Eden has announced that it will support Solana’s compressed NFTs (cNFTs) to provide a cost-efficient and scalable alternative to owning...

House Democrats back Biden candidacy as calls for president to drop out intensify on the left

FIRST ON FOX: House Democrats appear to be behind another Biden-Harris ticket, even as President Biden is being discouraged against running by some on the...

3 Standout Stocks to Buy as Worse-Than-Expected CPI Numbers Revive Inflation Fears

The August CPI report showed headline annual inflation rising 3.7% compared to the 3.2% reading seen in July and a 3.0% increase in June. As inflation...

Más popular