US Inflation Rate Holds Steady Amid Rising Interest Rate Hike Probabilities

The US inflation rate remained steady at 3.4% in August on a year-on-year basis, according to data from the Bureau of Labour Statistics.

This news was met with a mixed response from markets, as the S&P 500 index rose by 0.86%, while bond prices fell and interest rate hike probabilities increased.

The BLS report showed that core inflation decelerated from 2.5% to 2.4% in August, aligning with market consensus forecasts.

However, energy costs continue to exert significant pressure on consumers, with gasoline prices accelerating by 27.4% YoY and fuel oil prices surging by 52.0% annually.