US Inflation Remains Steady Amid Accelerating Energy Costs
The US Bureau of Labor Statistics reported that annual inflation remains at 3.4%, but monthly price rises accelerated to their fastest pace since May, at 0.4% in August.
The core inflation rate, which strips out food and energy, eased to 2.4% from 2.5%. This mixed signal comes as the Federal Reserve prepares for its next meeting on September 16th.
Fed Chair Jerome Powell's comments at Jackson Hole were seen as a turning point in market expectations, with CME's FedWatch tool initially indicating a 67.4% chance of a quarter-point increase and now jumping to 91.6%
The pressure on inflation is largely due to energy prices, which have skyrocketed amid global conflicts. US crude futures topped $100 a barrel this week, while diesel fuel averages over $6 a gallon in the country for the first time ever.