Analysis: US August CPI Accelerates, Market Rate Hike Expectations Rapidly Heat Up

PANews September 11 news, according to Jin10 analysis, U.S. consumer prices accelerated in August as gasoline costs rebounded after declining for two consecutive months, strengthening financial market expectations that the Federal Reserve may raise interest rates next week. The U.S. Bureau of Labor Statistics said on Friday that the consumer price index rose 0.4% month-on-month in August, following a modest 0.1% increase in July. Over the 12 months through August, consumer inflation rose 3.4%, matching the increase in July. Data on Thursday already showed a rise in the August producer price index, with several key components posting strong gains that will be factored into the calculation of PCE inflation. This, combined with last week's strong August employment report, further boosted market expectations for a rate hike next week. Following the release of the U.S. August CPI data, the market estimates the probability of a Fed rate hike next week at around 90%.