🚨 US CPI: Inflation Comes In Hotter Than Expected August US inflation data delivered a firmer-than-expected headline reading, adding anoth…
🚨 US CPI: Inflation Comes In Hotter Than Expected
August US inflation data delivered a firmer-than-expected headline reading, adding another complication to the Federal Reserve outlook.
Headline CPI rose 0.396% M/M on an unrounded basis, effectively 0.4%, compared with expectations of around 0.39%.
The bigger surprise came from core CPI, which increased 0.290% M/M, versus expectations of around 0.22% and up from 0.215% in the previous month.
On a year-over-year basis:
Headline CPI: 3.397%
Core CPI: 2.446%, down from 2.478% previously
The composition is important. Headline inflation is running above 3%, while monthly core inflation accelerated materially. That combination makes the path toward easier monetary policy more difficult, particularly against a backdrop of elevated energy prices and geopolitical risk.