Tuesday’s inflation report makes the point that, just maybe, Federal Reserve policymakers can decide against interest rate hike 3/4 percentage point more next week.
The Ministry of Labor reported that Consumer prices rose 0.1% in August from July, bringing them 8.3% higher than the level at the beginning of the year. Economists polled by The Wall Street Journal had forecast a 0.1% drop. Worse yet, core prices, excluding food and energy commodities in an attempt to better capture inflationary trends, rose 0.6 percent month-on-month with a 6.3 percent gain from July. same period last year. Economists are looking for a 0.3% gain.
