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MNI: US August Core CPI Surges 0.6%, Above Expectations


CPI inflation across the US rose 0.1% m/m in August and 8.3% y/y but core CPI jumped 0.6% m/m and 6.3% y/y, keeping pressure on the Federal Reserve for another supersized rate hike at its September meeting next week.

Owners' equivalent rent rose 0.7%. Energy rose 23.8% y/y and food increased 11.4%, the largest y/y increase since 1979, the BLS said.

The energy index fell 5.0% over the month as the gasoline index declined, but the electricity and natural gas indexes increased. Equities slumped and Treasury yields surged on the back of the release showing continued price pressures.

St. Louis Fed President James Bullard told MNI last month the Fed will be prepared to hold interest rates "higher for longer" should inflation continue to surprise to the upside.

Source: Department of Labor

MNI Washington Bureau | +1 202-371-2121 |
MNI Washington Bureau | +1 202-371-2121 |

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