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US inflation rises in August

US inflation rises in August | Mortgage Professional

Is one other Fed hike on the way in which?

US inflation rises in August

The US inflation rate jumped to three.7% in August as gas prices surged, although a more modest increase in other costs showed that overall price pressures are starting to ease.

Last month’s consumer price index (CPI) was up 0.5% on a month-over-month basis, in keeping with the Bureau of Labor Statistics, although the pace of core price growth fell – from 4.7% to 4.3% in August – marking the smallest increase for nearly two years.

The latest figures show that annual price growth stays well above the Federal Reserve’s goal level of two%, however the indisputable fact that core inflation is falling could strengthen the case for the central bank to hit pause on rate hikes in its decision next week.

Gasoline prices spiked by 10.6% last month, while overall energy prices increased by 5.6% over July but got here in 3.6% lower than the identical time last yr. Rent price growth fell to 0.3% compared with July.

The Fed’s benchmark rate of interest currently sits at a 22-year high, with the central bank having introduced a series of rate increases through the past 16 months to curb inflation, which hit a peak of 9.1% in June of last yr.

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