"Inflation rose last month as the price of gas, groceries, hotel rooms and airfares rose, along with the cost of clothes and used cars.Consumer prices increased 2.9% in August from a year earlier, the Labor Department said Tuesday, up from 2.7% the previous month and the biggest increase since January. Excluding the volatile food and energy categories, core prices rose 3.1%, the same as in July."
"The reading is the last the Fed will receive before its key meeting next week, when policymakers are widely expected to cut their short-term rate to about 4.1% from 4.3%. Still, the new inflation data underscores the challenges the Fed is facing as it experiences relentless pressure from President Donald Trump to cut rates. Inflation remains stubborn while the job market is weakening, diverging trends that would require polar reactions from Federal Reserve policymakers to address."
"On a monthly basis, overall inflation accelerated, as prices rose 0.4% from July to August, faster than the 0.2% pace the previous month. Core prices rose 0.3% for the second straight month.Gas prices jumped 1.9% just from July to August, the biggest monthly increase since a 4% rise in December. Grocery prices climbed 0.6%, pushed higher by more expensive tomatoes, apples, and beef."
Consumer prices increased 2.9% year-over-year in August, up from 2.7% in July, with core inflation at 3.1%, both above the Federal Reserve's 2% target. Monthly inflation accelerated 0.4% from July to August, while core prices rose 0.3% for a second consecutive month. Gasoline surged 1.9% month-over-month and grocery costs climbed 0.6%, pushed by higher prices for tomatoes, apples, and beef. Hiring has slowed, unemployment ticked up to 4.3%, and weekly unemployment claims rose, signaling labor-market weakness. The combination of persistent inflation and weakening jobs complicates upcoming Fed rate decisions.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]