Fed Hike Anticipated as Inflation Remains Sticky

A key interest rate hike by the Federal Reserve is now fully anticipated following the latest inflation data. The Consumer Price Index (CPI) rose 0.4% in August, matching economists' consensus forecasts.

The core CPI, excluding food and energy, increased 0.3%, which was higher than expected. Energy prices surged 2.1% in August, while food prices only rose 0.1%. Shelter costs rose 0.3% (owners' equivalent rent) in August, down from 0.4% in July.

The Producer Price Index (PPI) also rose 0.4% in August, meeting economists' estimates. However, wholesale goods prices increased 1.1%, while wholesale service costs only rose 0.1%. The European Central Bank raised its key interest rates by 0.25% on Thursday, putting further pressure on the Fed to follow suit.