US Core Inflation Surges, Fueling Rate Hike Expectations

The US consumer price index (CPI), excluding food and energy, rose by 0.3% in August from the previous month, according to data released by the Bureau of Labor Statistics on Friday.

This increase exceeded the median estimate of a 0.2% rise in a Bloomberg survey of economists.

The annual rate of inflation for core CPI stood at 2.4%, showing that prices continue to climb steadily.

Futures markets reacted swiftly, with investors pricing in a near-certainty of a rate hike by the Federal Reserve next week.

Sarah Hunt, Chief Market Strategist at Alpine Saxon Woods, attributed this move to the strong inflation data, saying it 'bolsters the case for a rate hike.'