Economy

U.S. consumer prices accelerate in August

U.S. consumer prices accelerate in August”

US stock index futures were little changed on Thursday ahead of key inflation data that could impact the Federal Reserve's decision on the timing of another interest rate hike this year.

Less the volatile food and energy sectors, the index rose 0.2 percent in August.

The government said Harvey had a "very small effect" on its ability to gather data.

The data covers the period during which Hurricane Harvey inundated Houston and disrupted oil refineries on the Gulf Coast, pushing up average gas prices nationwide. Still, the momentum in the core prices has rebounded considerably in the past few months.

While Federal Reserve officials are likely to treat the gasoline-driven rise in the CPI as temporary, they could take comfort in the almost broad gains in the monthly core CPI.

That followed four straight monthly increases of 0.1 percent. Housing costs were the other main driver of inflation last month: Hotel prices leapt 4.4 percent, the largest gain on records dating from 1997, after falling by the most on record in July. A core CPI inflation rate at 1.7 percent is in line with a core PCE inflation rate, the Fed's preferred measure, at an unchanged rate of 1.5 percent in August, well below the 2 percent target.

U.S. Treasury yields were mixed on Thursday as investors tried to figure out the impact of the consumer inflation report on future Fed interest rate decisions.

Most troublesome for the Fed was that consumer price inflation slowed this year through June. The core PCE rose 1.4 percent in July, the smallest year-on-year increase since December 2015. Fed chair Janet Yellen attributed the drop to temporary factors, including sharp falls in the price of mobile phone services.

The Bank of England signaled Thursday that officials are preparing to raise interest rates within months to restrain accelerating inflation, a fresh sign that a decade-long era of ultraloose central-bank policy is slowly drawing to a close.

Rising fuel and shelter costs drove up United States consumer prices in August, a sign inflation could be gaining pace after remaining stubbornly sluggish for months, according to government data released on Thursday.

On a 12-month basis, the index rose 1.9 per cent over the same month in 2016, up from 1.7 per cent last month.



Like this

loading...
loading...

Latest


15 September 2017
State Attorney General advises Iowans to take action after Equifax data breach
Logging on to Equifaxsecurity2017.com will allow you to check and see if your information may have been compromised. It will then ask you to provide your last name and last six digits of your social security number.

15 September 2017
Mourinho angry with Pogba over hamstring injury
For United, obviously Paul Pogba is the big one, and the latest time table as him "gone till November", apologies to Wycleaf Jean. Expanding later in the media conference, Mourinho continued: "We have players and we have players waiting for an opportunity".

15 September 2017
Gurgaon Woman Repeatedly Slaps Soldier, Now Arrested
Delhi Police registered a case after a video went viral on social media where accused is slapping the army staff. The vehicle involved during the incident, an Indica auto has also been seized from her house.

15 September 2017
Vatican recalls diplomat from USA over 'breach of child abuse images law'
It said the Vatican had asked for information about the case from the U.S; it wasn't clear if any had been provided. But the Argentinian pope has also been criticised for not doing enough to pursue officials who commit such crimes.

15 September 2017
State takes charge of Ryan school administration; CBI to probe student murder
Khattar said that he is in favor of a CBI inquiry since the matter and police investigations have attracted a lot of controversy. This decision by the Chief Minister has been taken in the wake of the boy being brutally murdered within the school premises.

15 September 2017
Brady: Concussions part of 'the physical nature of our game'
While Gisele Bundchen worries about the long-term health of her husband, Tom Brady doesn't fear for the future. He says the system has made him quicker now than when he started playing football.

15 September 2017
Woman spends night on road with son's body in Hyderabad
In a shocking tale, a helpless mother was forced to spend a night on road with her son's dead body in Hyderabad . Eswaramma's son had died of dengue at Niloufer Hospital just hours before, on Wednesday evening.

15 September 2017
Young boy granted wish to mow White House lawn
Here's a list of what I have and you are free to pick whatever you want: power mower, push mower, and weed whacker. A young boy who wrote to President Trump offering to cut the grass at the White House will have his wish granted.

15 September 2017
Carrizo Oil & Gas Inc. (CRZO)
This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell. Typically bull markets are times when investors may be willing to be a bit more speculative with stock selection.

15 September 2017
ShangriLa is online casino with guarantee of won money pay outs
Shangri La proposes games for any taste A large selection of slot games allows anyone to choose a game for any discerning taste. This is the best place to spend your free time with pleasure, stress relief, relax and forget about the daily problems.