US inflation comes in below expectations in August amid high energy prices linked to Iran war
US inflation in August rose less than expected, potentially easing pressure on the Federal Reserve for rate hike. Consumer spending increased despite rising energy prices linked to the US-Israel conflict. While a rate hike remains possible later this year, current market expectations have softened.
US inflation rose less than expected in August. According to The Korea Times, the Personal Consumption Expenditures Price Index increased 0.3 percent in August, following a revised 0.1 percent gain in July.
Consumer spending surged in August, despite rising energy prices. Live Mint and The Korea Times both mention that energy prices have been driven up by the US-Israel conflict with Iran, with diesel prices reportedly at record highs.
The less-than-expected inflation may reduce pressure on the Federal Reserve to raise interest rates. However, The Korea Times reports that another rate hike this year remains possible, with some economists predicting a hike by year-end. Financial markets have lowered their expectations for a rate increase in October.
Brief written by urgent.news from Live Mint, The Korea Times — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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