Consumer prices rose 0.4% in August, as expected; core inflation was higher than estimated
Consumer prices rose 0.4% in August, meeting expectations, while the core inflation rate, excluding food and energy, also increased by 0.3%, which was one-tenth of a percentage point higher than estimated. The year-over-year CPI remained at 3.4%, a level not seen since the first quarter. Real average weekly earnings increased by 0.3% month-over-month, but real average hourly earnings were down 0.3% year-over-year.
The slight uptick in core inflation suggests that underlying price pressures may persist, potentially influencing the Federal Reserve's upcoming monetary policy decisions.
Rising interest rates, with the 10-year Treasury yield approaching 5%, and upcoming University of Michigan consumer sentiment readings.
CONSUMER PRICE INDEX INFLATION FEDERAL RESERVE INTEREST RATES
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