Inflation & Prices

US Core CPI Picks Up, Keeping Another Fed Hike in Play This Year

  • Underlying inflation quickened for first time in six months
  • Overall consumer prices jumped in August on higher gas costs
Core CPI Ran at Faster-Than-Expected Pace in August
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Underlying US inflation ran at a faster-than-expected monthly pace in August, leaving the door open for additional interest-rate hikes from the Federal Reserve.

The so-called core consumer price index, which excludes food and energy costs, advanced 0.3% from July, marking the first acceleration since February, Bureau of Labor Statistics data showed Wednesday. From a year ago, it increased 4.3%, in line with estimates and marking the smallest advance in nearly two years.