In August, the annual inflation rate in the United States increased by 3.7%, slightly higher than the anticipated 3.6% rise. The Consumer Price Index (CPI) experienced its largest monthly gain of 2023, with a 0.6% increase that aligned with market predictions. Additionally, the core CPI rose by 0.3% and reached a total increase of 4.3%, meeting expectations of a 0.2% increase and matching the projected figure.
Although there was an increase in headline CPI figures, overall data indicated that inflationary pressures in the US are beginning to ease off as expected. This information did not provide much cause for celebration among those advocating for stricter monetary policies within the Federal Reserve (Fed), as markets continued to anticipate that interest rates would remain unchanged at next week's meeting while also predicting a mere 40% likelihood of an interest rate hike occurring in November.