Inflation in August remained steady, but a key data point came in slightly hotter than expected – leaving the odds of an interest-rate hike next week up in the air.
The Consumer Price Index rose 3.4% on an annual basis, still stubbornly above the Fed’s 2% goal but in line with economists’ forecasts and the same rate as July, the Bureau of Labor Statistics said Friday. On a monthly basis, it rose at a 0.4% pace.
Core CPI – which excludes volatile food and energy prices, giving a better picture of underlying inflation – jumped 2.4% over the past 12 months. It rose 0.3% over the month, slightly hotter than estimates of a 0.2% rise.
Meanwhile, gasoline prices continued to skyrocket, rising 3.9% and accounting for more than a third of the overall inflation rate.
This is a developing story. Please check back for updates.