Gasoline accelerates rise in consumer prices in the United States in August

Consumer prices in USA They posted their biggest rise in more than a year, following a rebound in the cost of gasoline, but a moderate rise in core inflation could encourage the Federal Reserve to keep interest rates unchanged next Wednesday.

The consumer price index rose 0.6% last month, the biggest increase since June 2022, the Labor Department reported Wednesday. He CPI had risen 0.2% for two consecutive months.

Gasoline prices rose sharply in August, reaching a high of $3.984 per gallon in the third week of the month, according to data from the U.S. Energy Information Administration, compared with $3.676 per gallon. gallon from the same period in July.

In the 12 months to August, the CPI rose 3.7%, up from 3.2% in July. While it is the second consecutive month of rebound in annual inflation, year-over-year consumer prices are down from a high of 9.1% in June 2022. The Federal Reserve has an inflation target of 2%.

Economists surveyed by Reuters had predicted that the CPI rose 0.6% last month and 3.6% year-on-year. The report was released a week before the Federal Reserve’s interest rate decision and followed data this month that showed labor market conditions easing in August.

Excluding the volatile components of food and energy, the CPI rose 0.3%, in a context of declining prices for used cars and trucks. The so-called core CPI had increased by 0.2% for two consecutive months. Although rents continued to rise, the trend is cooling and a further slowdown is expected as more apartment buildings come on the market.

In the 12 months to August, the so-called core CPI increased 4.3%, the smallest year-on-year increase since September 2021 and less than the 4.7% in July.

Financial markets overwhelmingly expect the Fed to leave its policy rate unchanged next Wednesday, tool says FedWatch of CME Group. Since March 2022, the US central bank has raised its benchmark overnight interest rate by 525 basis points, to the current range of between 5.25% and 5.50%.

However, a rate hike in November remains likely as services inflation, excluding housing, remains high.