US CPI Report: Mixed Bag as Headline Inflation Rises and Core Rate Falls

The US Consumer Price Index (CPI) report for August is out, and it's showing a mixed bag of results. The headline number rose 0.4% month over month, its largest increase in three months, while annual inflation held steady at 3.4%. This is in line with market expectations.

However, core CPI, which excludes food and energy prices, rose 0.3% month over month, above the previous month's 0.215%. The annual core rate fell to 2.4% from 2.5%, its lowest level since March 2021.

The big mover in this report is gasoline prices, which jumped 3.9% and accounted for more than one-third of the monthly increase. Energy prices are expected to rebound roughly 2.5% month over month after falling 1.5% in July.