August Inflation Data Sends Rate Hike Odds Soaring

The US inflation rate rose by 0.4% in August, an annual rate of 3.4%, according to the Bureau of Labor Statistics.

This increase was driven by significant jumps in the technology, airfare, and communication sectors.

Core inflation, which excludes food and energy prices, jumped more than economists had expected.

Federal Reserve governor Christopher Waller stated that if inflation comes in hot, he would consider a rate hike.

Market odds for a Fed rate hike rose from under 70% to nearly 90%, with the next policy meeting taking place on Tuesday and Wednesday.