Expectations that the Fed will pause on rate hiking next week are unlikely to be changed by today’s US inflation data, economists at Commerzbank report.
US core inflation somewhat above expectations
The inflation rate in August rose by half a percentage point to 3.7%. While this gasoline price-related boost had been expected, the core inflation rate also turned out to be slightly higher than forecast, even though it declined further to 4.3%.
The Fed can probably pause next week but will take a close look at further price developments.