US core CPI exceeds forecasts
LATEST US core CPI for August rises more than anticipated
US consumer prices rose more than anticipated last month, with core CPI increasing 0.24% month-over-month. This data, alongside elevated oil prices and recent employment figures, may strengthen the case for the Federal Reserve to raise interest rates at its upcoming meeting.
NOW PLAYING Bloomberg Surveillance 9/11/2026
US core CPI data for August came in higher than forecast, at 0.24% month-over-month, potentially bolstering the case for the Federal Reserve to implement a rate hike at its upcoming meeting. This figure, along with elevated oil prices contributing to inflationary pressures, has shifted market expectations, with traders now pricing in more than three rate hikes going forward, a significant increase from previous expectations of fewer than two.
The interpretation of this inflation data and the Federal Reserve's subsequent policy decision could significantly impact financial markets, influencing bond yields, equity valuations, and overall investor sentiment.
The episode also features discussions on the secular uptrend in bond yields, the implications of higher yields for equity valuations, the possibility of Gulf countries meeting with Iran, and analysis of oil price movements.