US Core Inflation Surges to 0.3% in August, Boosting Rate Hike Bets

The US consumer price index (CPI) excluding food and energy rose by more than expected in August, according to data released by the Bureau of Labor Statistics. The core CPI climbed 0.3% from a month earlier, exceeding the median estimate of a 0.2% increase in a Bloomberg survey.

The annual rate of inflation for this key gauge remained at 2.4%. The data will likely be scrutinized by Federal Reserve officials ahead of their next policy meeting, where interest rates may be adjusted.