US Core CPI Surges to 2.4% Annual Gain, Fueling Rate Hike Expectations
A key indicator of US consumer prices rose more than expected in August, bolstering the case for a rate hike by the Federal Reserve next week.
The core Consumer Price Index (CPI) increased by 0.3% from July to August and 2.4% on an annual basis, according to data released by the Bureau of Labor Statistics on Friday.
This rise in prices suggests that inflation is still a concern for the US economy, despite some officials suggesting it may be subsiding. The Federal Reserve has been weighing the need to raise interest rates to combat inflation against concerns about economic growth and job creation.
Energy prices rose 2.1% in August, while grocery prices remained relatively stable and shelter prices increased by 0.3%. Services prices, excluding energy and rents, rose 0.5%, driven by increases in categories such as communication, lodging away from home, and airline fares.