From Morningstar: 2024-09-11 10:26:00

The Consumer Price Index (CPI) increased by 2.5% in August from the previous year, a drop from July’s 2.9% rate. Core CPI, excluding food and energy costs, rose by 3.2% over the last 12 months after a similar increase in July. Economists predicted a 0.2% rise in August, with annual inflation forecasted at 2.6%. Food prices rose by 0.1% in August, while energy prices fell by 0.8%. Shelter prices increased by 0.5% in August.

Following the August CPI report, all eyes are on the Federal Reserve’s upcoming policy meeting, with expectations of an interest rate cut, the first since 2022. The debate centers on the extent of the rate cut, with some expecting a half-percentage-point cut, but investors leaning towards a quarter-point cut.

Investors now await the Federal Reserve’s decision on a potential interest rate cut following the release of the August CPI report. The market anticipates a quarter-point cut, despite some initial hopes for a more aggressive half-point cut. The outcome of the Federal Reserve’s two-day policy meeting is set to be announced on Wednesday afternoon.



Read more at Morningstar: August US CPI Report: Inflation Slows to a 2.5%…