Underlying U.S. inflation showed some stickiness last month, which could discourage the Federal Reserve from delivering a half-point interest rate cut next week
U.S. consumer prices rose marginally in August, but underlying inflation showed some stickiness, which could discourage the Federal Reserve from delivering a half-point interest rate cut next week.
Economists polled by Reuters had forecast the CPI gaining 0.2 per cent and rising 2.6 per cent year-on-year. Though inflation remains above the U.S. central bank’s 2 per cent target, it has slowed considerably, allowing policy-makers to focus more on the labour market in their quest to sustain the economic expansion.
The labour is cooling amid a significant moderation in hiring, reducing the risks of inflation reigniting. The central bank has maintained its benchmark overnight interest rate in the current 5.25 per cent-5.50 per cent range for a year, having raised it by 525 basis points in 2022 and 2023.
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