U.S. inflation data in August came in broadly in line with estimates, but the core rate rose faster than expected, putting a Fed rate hike next week firmly on the table.
The Consumer Price Index rose 0.4% in August, in line with economist forecasts of 0.4% and July’s 0.1% increase.
On a year-over-year basis, headline CPI rose 3.4%, versus expectations of 3.4% and July’s 3.4% reading.
Core CPI, which excludes volatile food and energy prices, increased 0.3% month over month, faster than forecasts of 0.2% and July’s 0.2% rise.
On an annual basis, core inflation came in at 2.4%, in line with expectations of 2.4% and July’s 2.5%.
The price of bitcoin BTC$77,057.36 dipped back to $76,700 in the minutes following the news.
Always a closely-watched report, the August CPI took on supreme importance in the past two weeks after Fed Chairman Kevin Warsh hinted at his Jackson Hole speech that the Fed might have to act if inflation didn’t soon show signs of slowing down.