US Inflation Rate Hits Softer-Than-Expected Mark

The US inflation rate came in lower than expected, with a softer-than-feared reading of 0.2% month-on-month (MoM) in August, versus forecasts of a 0.3% increase.

This is according to the latest report from the Bureau of Economic Analysis (BEA), which also revised July's print downward to 0.1% MoM.

The inflation undershoot was largely due to methodological changes in calculating portfolio management fees, software, and certain healthcare costs.

The annual rate of core inflation now stands at 3%, still above the 2% target, but with a more encouraging month-on-month trajectory.

NY Fed President John Williams had previously stated that there was no immediate urgency for another interest rate hike, and today's outcome supports this view.