Last Updated on January 11, 2024 9:30 PM CST
In August, U.S. inflation experienced its largest monthly increase of the year, with the consumer price index (CPI) rising by a seasonally adjusted 0.6%. This increase represented a 3.7% rise compared to the previous year. Core CPI, which excludes food and energy, increased by 0.3% and 4.3% year-on-year. Energy prices, particularly gasoline, played a significant role in the overall increase, rising by 5.6% during the month. Shelter costs, accounting for a third of the CPI, increased by 0.3%, with the rent of primary residence index rising by 0.5% and owners equivalent rent by 0.4%. Inflation is impacting workers’ paychecks, as real average hourly earnings declined by 0.5% in the month, though they were still up by 0.5% compared to the previous year. The Federal Reserve is monitoring these inflation trends as it assesses its approach to monetary policy. Currently, markets largely expect the Fed to keep rates unchanged at its next meeting, with a possibility of one more increase in November.
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