US CPI Missed Forecasts in August
Rise of the US consumer prices slowed in August. The US Labor Department reported, that consumer price index (CPI) rose by 0.2% mom in August, as in July, missing expectations for a gain of 0.3%. On annual basis, the CPI increased by 2.7%, below forecasts for a reading of 2.8% and down from 2.9% in July.
Core CPI, a key gauge of underlying consumer price pressures that excludes food and energy costs, gained 0.1% mom in August, below forecasts for a gain of 0.2%. The annual increase in the core CPI was 2.2%, while economists had expected a 2.4% advance.
Still, the data pointed to a steady increase in inflation pressures, that should keep the US Central Bank on track to gradually raise interest rates. The US Federal Reserve is widely expected to hike interest rates two more times this year, with the next move higher coming at its September 25-26 meeting.