Consumer prices increased at an annual rate of 2.9 % in August, where weekends jump

The prices that consumers pay against a variety of goods and services rose up to August, while unemployment demands accelerated, providing difficult economic signals to the Federal Reserve before meeting next week.

The consumer price index recorded a seasonal increase by 0.4 % for this month, which is the largest gain since January, as the annual inflation rate by 2.9 %, an increase of 0.2 percentage points over the previous month and the highest reading since January. The economists surveyed by Dow Jones were looking for readings of 0.3 % and 2.9 %.

For the basic vital reading that excludes food and energy, August profit was 0.3 %, which put the 12 -month number at 3.1 %, both expected. CORE’s federal reserves are a better measure of long -term trends. The purpose of inflation in the central bank is 2 %.

Upon employment, the Ministry of Labor has informed a sudden increase in weekly unemployment compensation files to 263,000 seasonal rates for the week ending September 6, which is above 235,000 estimates and an increase of 27,000 from the previous period. It represents the highest level of claims in nearly four years.

Reports provide the final parts of the complex data puzzle that Central Banking will review at the two -day policy meeting, which concludes September 17.

Sima Shah, chief international strategic expert in the main asset management, wrote: “The consumer price index report has been overlooked today through the report of unemployed claims.” “Although the consumer price index report is more hot than expected, it will not give the Federal Reserve a moment of frequency when they declare a decrease in prices next week. If anything, the jump in unemployment claims will pump more urgency in making decisions at the Federal Reserve, where Powell is likely to refer to a sequence of price cuts on the road.”

Reading the consumer price index, which was closely monitored, witnessed an increase in shelter costs by 0.4 %, which represents about a third of the weighting of the index. Food prices jumped by 0.5 %, while the energy increased by 0.7 %, as gasoline increased by 1.9 %, indicating the effects of tariffs on prices.

The market pricing indicates 100 % certainty that the Federal Reserve will reduce the standard interest rate, which is currently targeting between 4.25 % -4.5 %. However, there was an implicit implicit opportunity for the Federal Reserve to choose to deviate from the step of the usual quarter point and reduced by half a point given the weakness in the labor market this year and subjugation inflation readings.

Traders also transferred the possibility of another decrease in October to certainty near certainty and see a high possibility of a third step in December.

Federal reserve officials were closely monitoring inflation data for evidence of the influence of President Donald Trump’s tariff. There were some visual passes of duties, although inflation numbers were relatively good. BLS reported on Wednesday that producers’ prices have already decreased by 0.1 % in August.

The prices of vehicles sensitive to tariffs witnessed a monthly increase, as new vehicles increased by 0.3 %. The cars and trucks used, which are generally not affected by definitions, rose 1 %.

However, the Federal Reserve focuses on the costs of services as signs of basic inflation. Historically, the definitions have been considered temporarily enhanced by the prices of goods, but not a long -term inflation driver.

The prices of services except energy increased by 0.3 % in August and increased by 3.6 % per year. The shelter also increased by 3.6 % annually, and it decreased steadily during the year after its peak is above 8 % in early 2023.

If federal reserve officials have any doubt about cutting, the report of the unemployed claims may have concluded the deal.

Initial deposits have achieved its highest point since October 23, 2021, which indicates that employers may now reduce the workforce. Although employment slowed throughout the year, workers’ layoffs have also been tamed, indicating more status instead of weakening the materials in what the Jerome Powell chair described repeatedly as a “strong” work market.

The ongoing claims, which were operated after a week, did not change at 1.94 million, but were close to its highest levels since late 2011 as well.