US Inflation Holds at 3.4% as Gas Prices Spike
US inflation held at 3.4% year-over-year in August, but monthly gains accelerated to 0.4% driven by spiking gas costs and broader price increases in services. The hotter-than-expected data has boosted market bets that the Fed will raise interest rates at its next meeting, despite recent efforts by the administration to suppress bond yields.
Market expectations have shifted sharply after the report, with CME FedWatch now indicating over an 80% probability that the Federal Reserve will hike interest rates on September 16, a significant jump from the previous day. This move follows comments from officials suggesting that the recent acceleration in monthly prices undermines the case for keeping rates on hold.
Source: KELOLAND.comUS inflation held steady at 3.4% year over year in August, but monthly gains accelerated to 0.4%. Rising fuel costs driven by Middle East conflict are the primary driver.
Source: koreatimes.co.kr
