U.S. August CPI Seen Rising 0.4% as Fed Weighs Rates With Oil Above $100
Updated
Updated · NBC News · Sep 11
U.S. August CPI Seen Rising 0.4% as Fed Weighs Rates With Oil Above $100
3 articles · Updated · NBC News · Sep 11
Summary
Friday’s CPI report is expected to show U.S. consumer prices rose 0.4% in August from July, with annual inflation holding at 3.4% ahead of next week’s Fed decision.
Core inflation is forecast to increase a milder 0.2%, but the reading may already understate price pressure after U.S. crude climbed above $100 a barrel and Brent topped $107 on Thursday.
Fed officials have tied policy to the data: Governor Christopher Waller said a hot report would argue for a hike, while Chair Kevin Warsh has called prices more concerning than the still-stable labor market.
August payrolls rose 162,000 and prior months were revised up, reinforcing the view that job growth is strong enough to withstand tighter policy if inflation reaccelerates.
The stakes reach beyond markets, with gasoline averaging $4.27 a gallon, mortgage rates at 7.07%, and producer prices rising at a 5.4% annual pace as affordability strains deepen.