- IPC rises 0.1% in August against expectations of a 0.1% drop.
- Annual rate goes from 8.5% in July to 8.3%.
- The dollar jumps sharply on all fronts, the stock markets go into negative territory.
The United States Consumer Price Index showed a monthly rise in August of 0.1%, against the expectation of a 0.1% drop. The annual rate went from 8.5% in July to 8.3% in August, with a reading of 8.3% expected.
The Core CPI registered a rise of 0.6% in August, higher than the 0.3% of the market consensus and the annual rate went from 5.9% to 6.3%, higher than the 6.1% expected.
The data reaffirmed expectations of a more aggressive Federal Reserve ahead. The next Fed meeting will be next week. The decision will be known on Wednesday, September 21. Wholesale inflation figures for August will be published on Wednesday. A fall in the annual rate of the Producer Price Index is expected from 9.8% to 8.8%.
The dollar The market soared after the figures, metals tumbled and Wall Street futures moved into negative territory. Treasury yields rose dramatically, with the 10-year note climbing as high as 3.43%, the highest since June 16.
Source: Fx Street
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