Fed on Alert for One More Hike After ‘Disappointing’ Inflation
- Central bank has signaled a pause, but may raise rates later
- Services prices, watched closely at Fed, posted sharper rise
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Hotter-than-expected inflation likely ensures the Federal Reserve keeps its options open to raise interest rates again in November or December following an expected pause this month.
The so-called core consumer price index, which excludes food and energy costs, advanced 0.3% from July, the first acceleration in six months, Bureau of Labor Statistics data showed Wednesday. From a year ago, it increased 4.3%, still well above the Fed’s goal even as it was the smallest advance in nearly two years.