US Inflation Rises in August
Inflation in the US increased by 0.3% in August compared to July, marking the highest level in the past four months. The Consumer Price Index (CPI) rose by 2.1%. Despite the uptick in inflation, the US Federal Reserve is expected to keep interest rates unchanged at its next meeting. However, there is speculation that the Fed might cut rates by half a point in the near future.
This inflationary trend is anticipated to impact the US stock market and dollar trading. The rise in CPI could lead to increased costs for airfare, clothing, daily necessities, and car insurance. Although prices of many commodities have decreased over the past year, providing some relief, inflation remains a concern.
Employment figures have been notably weak over the past three months, with the lowest hiring rates since 2020. Companies are reportedly cautious about hiring new employees. The Federal Reserve is closely monitoring wage growth and inflation as it balances its focus on employment generation.