US Inflation Hits 2.9% in August, Driven by Shelter and Energy Costs

Other Contributors to Core Inflation Included A 5.9% Monthly Surge in Airline Fares, A 1.0% GAIN IN USED CAR PRICES, AND A 0.5% Rise in Apparel. In Contrast, Medical Care Dipped 0.2%, with Declines in Dental Services and Prescription Drugs Tempering Broader Service Inflation.

Food Inflation Broadens; Groceries lead the gains The Food Index Rose 0.5% in August, with Food-At-Home Jumping 0.6% and All Six Major Grocery Categories Climbing. Fruits and Vegetables Soared 1.6%, Driven by Tomatoes (+4.5%) and Apples (+3.5%). Meat, Poultry, Fish, and Eggs Rose 1.0%, Led By Beef Prices, Which Surged 2.7%. Over The Past 12 MONHS, The Food Index Increased 3.2%, Outpacing Headline Inflation.

Gasoline Rebounds, Offsetting Energy Services Deckline Energy Prices Rose 0.7% in August Following A 1.1% Drop in July. Gasoline ClimBed 1.9% on a seasonally adjusted basis, reversing the previous month’s losses. However, Natural Gas Fell 1.6%, and Electricity Edged Up Only 0.2%. Annual Energy Inflation Remains Muted at 0.2%, with Gasoline Still Down 6.6% Year-Over-Year.

Traders Eye September Fomc: Will Persent Cor Cor Trigger Hawkish Signals? With Core Inflation Remaining Sticky at 3.1%, and Shelter Still Exerting Upward Pressure, Traders Should Expert The Fed To Hold Rates Steady this Month White Reting a Hawkish Thone. The Data Does Little to Support Near-Term Rate Cuts, Especiality with Food and Travel-Related Costs Accelection.

Market Forecast: Bullish Dollar, Cautious Equities, Yield Curve Pressure Likely Given the Stronger-Tan-Exectored Inflation Print, The US Dollar Is Likely to Remain Supported, Especialya Against Low-Yeliding Currencies. Treasury Yields May Continue Rising on Repriced Rate Expectations, Putting Pressure on Growth Stocks and Sectors Sensitive to Finance Costs. Equity Markets Could Face Short-Term Valatility As Fed Rate Cuts Gets Get Further Pushed Out.