Economics

Fed Seen Being Aggressive for Longer After US Inflation Surprise

CPI excluding food and energy topped expectations in August
Fourth 75 bps hike in play in Nov., some see 100 bps next week

WATCH: US inflation was firmer than expected in August as the CPI increased 0.1% from July, after no change in the prior month.Source: Bloomberg

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By Jonnelle Marte and Steve Matthews

September 13, 2022 at 2:23 PM UTC

Updated on

September 13, 2022 at 5:12 PM UTC

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Federal Reserve officials face fresh pressure to extend rather than slow down aggressive interest-rate increases after US inflation came in hotter than forecast, potentially putting a fourth-straight 75 basis-point hike on the table.

While cheaper gasoline held US headline consumer inflation to a 0.1% advance in August from the prior month, the core measure that excludes volatile food and energy prices jumped 0.6% -- double economists’ expectations, Labor Department data showed Tuesday.