US August Core CPI Held Back by Housing Costs…September Small Cut Likely
In August, the US Consumer Price Index (CPI) continued its five-month decline, reaching the mid-2% range. However, In August, the US Consumer Price Index (CPI) continued its five-month decline, reaching the mid-2% range. However, housing costs led to a core CPI increase that surpassed market expectations. With a rate cut expected at the Federal Open Market Committee (FOMC) meeting on September 17-18, the prospect of a 0.5% "big cut" seems unlikely. On September 11th, the US Department of Labor reported that the CPI for August rose by 2.5% year-over-year. This is the lowest level since February 2021, marking a 3.5-year low and aligning with market forecasts. The CPI has narrowed its increase from July, which was the first time it entered the 2% range since March 2021. On a month-over-month basis, CPI rose by 0.2%, matching expectations and the previous month's figure. Excluding the volatile components of energy and food, the core CPI increased by 0.3% month-over-month and...