CPI in August: Inflation remains high before the decision to reduce the Federal Reserve rate

Inflation rose In August, it remained much higher than the target Federal Reserve, as the bank’s central policy makers weighing potential cuts at their meeting next week.

The work statistics office said on Thursday that Consumer price index (CPI) -A wide scale of daily goods such as gasoline, scale and cost of rent-by 0.4 % in August compared to last month, increased to 2.9 % on an annual basis.

The monthly number was more hot than the Economists covered by LSEG, while the general number on an annual basis was in line with expectations.

The so -called basic prices, which exclude gasoline measurements and volatile food to evaluate price growth trends better, increased by 0.3 % over the previous month and 3.1 % over last year. Both people were in line with economists’ expectations.

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High inflation has led to severe financial pressure in recent years for most American families, which are forced to pay more against daily necessities such as food and rent. It is especially difficult for low -income Americans, because they tend to spend more of their salaries that have already been placed on necessities and have less flexibility to save money.

Food prices It increased by 0.5 % in August, when the home index jumped 0.6 % and the food increased from the index by 0.3 %. Over the past year, the total food index increased by 3.2 %, with food in the home increased by 2.7 % and food away from home by 3.9 %.

Egg prices were flat in August after seeing the low price in the previous three months, after the prices rapidly increased last year due to the outbreak of bird flu. The meat, poultry and fish index increased by 1.1 % on a monthly basis and increased by 5.4 % from last year. Dairy prices increased by 0.1 % in August and 1.3 % higher than last year. The fruit and vegetable index increased by 1.6 % in August and 1.9 % higher than last year.

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Prices of housing It increased by 0.4 % in August and top 3.6 % over last year. The shelter index was the main engine to increase in the index of all elements.

Energy costs 0.7 % increased last month and rose 0.2 % from last year. Gasoline prices increased by 1.9 % in August, but it decreased 6.6 % compared to last year. Electricity costs decreased by 0.1 % in August, but it increased by 6.2 % from last year.

The transportation costs increased by 1 % on a monthly basis and higher by 3.5 % than last year. Maintenance and repair of cars The costs increased by 2.4 % in August and rose 8.5 % compared to last year. The price of airlines increased by 5.9 % last month and is 3.3 % higher than this time last year.

The prices of clothes jumped by 0.5 % in August, increased by 0.2 % from last year, while shoe costs decreased by 0.4 % for this month and 1.4 % higher than last year.

The tools, devices, equipment and outdoor supplies increased by 0.8 % in August and ups 3.9 % over last year. Furniture and bedding costs increased by 0.3 % in August and 4.7 % rose from last year.

The Federal Reserve Chairman refers to the labor market in the Federal Reserve in the labor market

The CPI report comes in August as Federal Reserve The possible interest rate will be reduced in its meeting next week. Central Banking Policy makers will weaken the labor market weakening against inflation, which is still much higher than the target rate of 2 %, amid signs that the customs tariff pays prices up.

Federal Reserve Chair Jerome Powell He said in his speech at the annual Jackson Hall conference of the Central Bank last month that the negative risks of the labor market can outweigh the risks of inflation, and open the door for policy makers to reduce interest rates.

“At the present time, inflation is a major subcontinent, but the labor market is still the main story,” said Ellen Zintner, the chief economic strategy of Morgan Stanley. “It may seem that the consumer price index today compensates for the product price index yesterday, but the atmosphere was not enough enough to disperse the attention of the Federal Reserve from the image of softening functions. This translates into a decrease in prices next week – and it is likely to come more.”

“In today’s numbers, we are witnessing some effects of definitions, especially with high prices on cars and clothes,” said Jeffrey Roche, chief economist at LPL Financial, said: “Hot inflation printing will not change the Federal Reserve Plan to reduce prices in September, but the Federal Reserve in October may keep if the inflation expectations are no longer well.”

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The market was priced in reducing the Federal Reserve in the meeting next week, as the CME Fedwatch tool showed a 90.8 % chance of 25-basis reduction and 9.2 % probability to reduce 50 Basis.