US inflation exceeds expectations

Annual inflation had stood at 3.4% in August. Meanwhile, the Consumer Price Index (CPI) increased by 0.6% month-on-month, in line with forecasts. The figures indicate that annual inflation continued to rise in the United States, while monthly price increases also accelerated.

Core inflation, which excludes food and energy prices, rose 2.6% year-on-year, surpassing expectations of 2.5%. Monthly core CPI increased by 0.3%, exceeding the forecast of 0.2%. With both headline and core annual inflation coming in above expectations, uncertainty surrounding the Federal Reserve's (Fed) interest rate policy has increased, potentially reinforcing expectations that restrictive monetary policy will remain in place for longer.