Other contributors in core inflation included 5.9% monthly increase in airline fares, 1.0% hike in used car prices and 0.5% increase in apparel. Conversely, with a decline in dental services and a decline in dental services that temporary dental services, medical care drowned 0.2%.
Food inflation broader; Grocery items leads benefits
The food index rose 0.5% in August, with 0.6% of the food house and all the six major grocery categories. Fruits and vegetables increased by 1.6%, operated by tomatoes (+4.5%) and apples (+3.5%). Meat, poultry, fish and eggs increased by 1.0%, leading with beef prices, which increased by 2.7%. In the last 12 months, the food index increased by 3.2%, leading to the headline inflation beaten.
Gasoline Rebound, Offsetting Energy Services declines
Energy prices rose 0.7% in August after a decline of 1.1% in July. Gasoline climbed 1.9% on a seasonal adjusted basis, reversing last month’s loss. However, natural gas fell 1.6%, and electricity only increased by 0.2%. The annual energy inflation is mute at 0.2%, the gasoline is still 6.6% year-on-year.
Traders Eye September Fomc: Will the core CPI trigger Hawkish signal be?
Sticky at 3.1%with core inflation, and shelter is still pressing upwards, traders expect the fed to keep the rates stable this month, while a hawkish tone is maintained. The data greatly reduces to support the rate cut in the near-term rate, especially with speeds in food and travel related costs.
Market forecast: rapid dollar, vigilant equity, yield curve pressure likely
Given the strong-to-adapt inflation print, the US dollar is likely to support, especially against the low yielding currencies. Treasury yields may continue to grow on the resurrection rate expectations, putting pressure on development shares and areas sensitive to the cost. Equity markets can withstand short -term instability as the fed rate cut stakes are pushed out and pushed out.
