Fed Hike Anticipation Grows as Inflation Remains Sticky

A key interest rate hike by the Federal Reserve (Fed) is now fully anticipated as inflation remains sticky and central banks move in tandem.

The Labor Department announced that the Consumer Price Index (CPI) rose 0.4% in August, matching economists' consensus forecasts.

Excluding food and energy, core CPI rose 0.3%, exceeding economists' expectations of a 0.2% increase.

However, the Producer Price Index (PPI) report had mixed results: while PPI rose 0.4% in August as expected, core PPI rose only 0.2%, below forecasts.

The European Central Bank's (ECB) decision to raise its key interest rates by 0.25% on Thursday added pressure on the Fed to follow suit, given that big central banks tend to move in tandem.