Citi Projects 0.31% Monthly Increase in U.S. Core CPI for August
Despite a 0.4% rise in August, economists predict a Fed rate cut next week, though tariff-related cost pressures could lead to stagflation concerns.
Summary
US consumer prices rose by 0.4% in August, pushing the annual inflation rate to 2.9%, the highest since January. Although inflation increased, economists predict the Fed will cut rates next week due to labor market weakness. Tariff-related cost pressures are expected to contribute to stagflation fears in the coming months.
Terms & Concepts
- Consumer Price Index (CPI): A measure that examines the weighted average of prices of a basket of consumer goods and services, used to gauge inflation.
- Year-on-Year (YoY): A method of comparing a statistic for one period with the same period in the previous year.