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MNI BRIEF: US Aug CPI Firmer Than Expected; Core CPI Up 0.3%

(MNI) WASHINGTON

U.S. CPI saw a slightly larger than expected increase in August, accelerating to a 0.6% (0.631% unrounded) increase from 0.2% in July as gas prices surged and shelter inflation stayed high. Core CPI rose 0.3% (0.278% unrounded) in August, a tenth faster than July and analyst expectations, sending 10-year Treasury yields briefly to their highest levels since 2007.

From a year ago, headline CPI picked up to 3.7% from 3.2% in July and core CPI rose 4.3%. The data should keep Federal Reserve officials open to another possible quarter-point hike in interest rates before the end of the year. (See: MNI INTERVIEW: Fed Probably Needs A Bit More Tightening-Aikman)

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U.S. CPI saw a slightly larger than expected increase in August, accelerating to a 0.6% (0.631% unrounded) increase from 0.2% in July as gas prices surged and shelter inflation stayed high. Core CPI rose 0.3% (0.278% unrounded) in August, a tenth faster than July and analyst expectations, sending 10-year Treasury yields briefly to their highest levels since 2007.

From a year ago, headline CPI picked up to 3.7% from 3.2% in July and core CPI rose 4.3%. The data should keep Federal Reserve officials open to another possible quarter-point hike in interest rates before the end of the year. (See: MNI INTERVIEW: Fed Probably Needs A Bit More Tightening-Aikman)

Keep reading...Show less