US inflation rises below expectations in August; consumer spending robust
WASHINGTON — U.S. inflation increased less than expected in August and price pressures were more moderate in the prior month than previously reported, likely reducing the urgency for the Federal Reserve to raise interest rates again in October. Another rate hike this year, however, remains on the table as the report from the Commerce Department on Wednesday showed consumer spending surging last…
U.S. inflation rose slightly less than anticipated in August, with price pressures proving more subdued than initially reported, according to a Commerce Department report. This cooling of inflation may provide the Federal Reserve with additional time to consider its October interest rate decisions, as consumer spending surged last month.
However, another rate hike this year is still a possibility, as financial markets have adjusted their expectations for a rate increase to next month. Despite the war between the United States and Israel, which has driven up energy prices and pushed diesel prices to record highs, the U.S. economy seems to be weathering the storm.
Sal Guatieri, a senior economist at BMO Capital Markets, suggested that the more moderate inflation figures for August could offer the Fed greater flexibility as it seeks to navigate the current economic landscape.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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