On Tuesday, data from US Labour Department had unveiled that US Consumer Prices Index rose modestly last month, as a robust build-up in underlying price pressure continued to pickpocket the Americans’ hard-earned money while handing out an ammunition to US Fed to hike its benchmark borrowing cost by 75 bps (basis percentage point) at its next policy meet.
In the matter of the fact, Tuesday’s data had flabbergasted many, as US Government had claimed several times that a persistently bottlenecked supply chain jam might just have been easing. Nonetheless, a sustenance in wage growth alongside an increase in resilient labour market, would likely to keep the US Fed on an aggressive path for a while.
Meanwhile, followed by the reveal of the data, a senior economist at BMO Capital Markets in Toronto, Sal Guatieri said, “The Fed is all but sure to hike rates aggressively next week, likely by 75 basis points, while pushing back strongly against talk of a near-term pause in the tightening cycle”.
US Consumer Price Index rises last month
According to data from the US Labour Department, US Consumer Prices Index, a weighted change in price of consumers’ goods on a given period of time, gained 0.1 per cent last month, while rental costs, foods alongside healthcare had contributed the most on last month’s rise in Consumer Price Index.
In tandem, over past twelve months through August, Core CPI jumped 6.3 per cent compared to the same time a year earlier, while Core CPI gained 0.6 per cent on a monthly basis. Nonetheless, US CPI had received a room to breathe following a 10.6 per cent decline in gasoline prices.