CPI

Tuesday's US economic docket highlights the release of the critical US consumer inflation figures for August, scheduled later during the early North A.

Gold extended its slide and dropped below $1,700 for the first time in a week on Tuesday. EUR/USD came under heavy bearish pressure and lost more than 100 pips following the US inflation report, which showed a stronger-than-expected increase in Core CPI in August. GBP/USD suffered large losses and dropped below 1.1550 in the early American session on Tuesday. The author makes no representations as to the accuracy, completeness, or suitability of this information. The purchasing power of the USD is dragged down by inflation. In case the pair clears that hurdle and flips into support, it could test 1.0200 (psychological level, Monday high) and target 1.0245 (static level) afterwards.” “On the downside, 1.0100 (200-period SMA, Fibonacci 50% retracement) aligns as key support. The immediate market reaction to the report, however, is more likely to be limited as investors now start repositioning for the FOMC monetary policy meeting on September 20-21. The yearly rate is also expected to decelerate to 8.1% in August from the 8.5% previous. This could drag the US Treasury bond yields and the USD lower. This, in turn, keeps the US dollar depressed near the monthly low. We believe the YoY headline CPI should fall five-tenths to 8.0%, while core should tick up a tenth to 6.0%.”

Monthly U.S consumer prices unexpectedly rose in August as declining gasoline prices were offset by gains in the costs of rent and food, giving cover for ...

This is going to put the idea of transitory inflation to bed for now and anchor U.S. “It takes a long time to introduce inflation into the economy and it takes a long time for it to slow down. The key thing here is that we're now looking at near-certain odds on a 75 basis point move next week, but also potentially a 50 basis point or higher move in November." However, the real story is the fact that the core rate is continuing to rise and which now makes another 75bps hike being delivered by the FOMC this month look like a certainty. This implies the Fed will remain in tightening mode for longer and suggesting interest rates still have some way to go before they reach the terminal rate." That just shows that it is not which means that the Fed is going to remain aggressive for longer. People were expecting inflation to peak and read into that reversal and interest rates next year, which we think is just absolutely naive to think that's going to be the case. “Crude prices started to come down and people took that in recent weeks as a hint that inflation was slowing. “This suggests an aggressive move by the Fed is on the horizon. Inflation was supposed to show a cooler print, PPI tomorrow is now potentially going to be hotter too, that just suggests that it is not responding as quickly to the Fed action as everyone said it would and was supposedly happening. “I’m not surprised, I’ve been saying all along it is going to be hot, so 75 (basis points) is now locked and loaded, there is absolutely no discussion about that. “The good news is "peak narrative" holds as July was the highest print.

The August CPI inflation rate fell but core inflation reaccelerated, locking in a big Fed rate hike and dealing a blow to the Dow Jones.

Prices for transportation rose 0.5% on the month and 11.3% from a year ago. Core goods prices rose 0.5% on the month and 7.1% from a year ago, a tick up from July's 7% increase. But inflation has been too high for too long, so there's increased risk that households will begin to expect higher inflation in the future. Core prices are again the focus, which is a return to normal. Inflation in nonenergy services prices, which affects 56% of consumer budgets, has yet to subside, rising 0.6% on the month and 6.1% from a year ago, vs 5.5% in July. Prices for used cars and trucks fell 0.1% on the month. Even worse for the Dow Jones and broader stock market, Wall Street is now pricing in a rise in the Fed's key rate to a range of 4%-4.25% by the end of 2022. The annual core inflation rate rose to 6.3% from 5.9% in July. The 10-year Treasury yield, which closed near a 3-month high of 3.36% on Monday, rose 7 basis points to 3.43%. The core CPI rose 0.6% from July. The CPI inflation rate eased to 8.3%, retreating from July's 8.5% and June's 9.1% rate, amid falling gas prices. The CPI inflation rate continued to pull back from a 40-year peak in August, but less than expected.

It's becoming a game of Whac-A-Mole for the Federal Reserve to keep consumer prices from shooting up. That might mean an aggressive-for-longer stance on ...

CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). Futures trading in federal funds now reflects a minor probability of the Fed raising rates by 100 basis points next week and suggests the rate-hike cycle peaking at 4.25% in March 2023. Ahead of the data, interest-rate traders expected the Fed to hike borrowing costs by 75 basis points (0.75 percentage point) at the U.S. The U.S. Prices for risky assets tumbled after the CPI release, with bitcoin falling from $22,700 to nearly $21,000. The market now has to bear that adjustment." Consumer Price Index](https://in.investing.com/economic-calendar/cpi-733), which showed the 12-month inflation rate slowed to 8.3% in August from 8.5% the prior month – a tiny decrease that is likely to keep investors worried about sticky price pressures. [strict set of editorial policies](/ethics/). The CPI report had been expected to slow to 8.1%. The Federal Reserve’s target for inflation is 2% annually. [Turek tweeted](https://twitter.com/jturek18/status/1569683544661704706) after the CPI release: "I think the pricing assumption now has to be 75, 75, 50, 25. The path forward for risk assets, including cryptocurrencies, may have become more challenging.

Bitcoin falls by 7.5% amid a wider sell-off in the crypto market after the August CPI data came in higher than expected.

Break 19k, and it goes to the main target of 14k-16k for the last low.— il Capo Of Crypto (@CryptoCapo_) Sign up here!](https://www.kitco.com/services/e-mail-lists-signup.html) [(Kitco News)](/) - The cryptocurrency market faced significant downward pressure following Tuesday’s higher-than-expected Consumer Price Index (CPI) print, which came in at an annual increase of 8.3% after 8.1% was expected. Current pivot is 21k. [ETH](https://www.kitco.com/price/ethereum)), which had rallied to start the week in anticipation of its upcoming Merge, saw its price plummet 9.42% from its daily high of $1,760 to a low of $1,592 before support arrived to stem the outflow and bid it back above $1,600. [Editor's Note: With so much market volatility, stay on top of daily news! [BTC](https://www.kitco.com/price/bitcoin)) traders were bullish in the early hours on Tuesday, which resulted in the price of BTC rising to resistance at $22,800 before the CPI announcement sparked a 7.5% sell-off in price that resulted in the top crypto hitting a low of $21,080.

Inflation saw a 0.1% for August according to the CPI report, but this was almost entirely due to gasoline prices, other prices rose more than the Fed wanted ...

So markets believe that today’s report has made the Fed slightly more nervous about where inflation is trending. inflation may be trending in the right overall direction, but it’s not getting there fast enough for the Fed. The Fed wants to see a broad range of prices signal that the wave of inflation is past, that’s not a conclusion that’s easy to draw from this CPI report. So today’s inflation report despite the low month-on-month number is not good news for markets. Even though food costs rose 0.8% for the month, which is high, that’s still the lowest level of food price inflation that we’ve seen in many months. Still the CPI report was not entirely negative.

WASHINGTON, Sept. 13 (Xinhua) -- The U.S. Labor Department reported Tuesday the country's consumer inflation in August surged 8.3 percent from a year ago, ...

It lifted the rate by three-quarters of a percentage point in June and July, the most aggressive hikes in decades. The food index rose 0.8 percent over the month after growing by 1.1 percent in July, marking that smallest monthly increase since December 2021. Even with the recent drop, the energy index rose 23.8 percent over the past 12 months. The latest inflation report showed that the so-called core CPI, which excludes food and energy, rose 0.6 percent in August following a 0.3-percent rise the prior month. The June CPI of 9.1 percent marks the largest 12-month increase since the period ending November 1981. Labor Department reported Tuesday the country's consumer inflation in August surged 8.3 percent from a year ago, slightly down from the previous month but still at an elevated level, warranting another big rate hike by the Federal Reserve.

It takes time for falling prices to feed into the consumer price index. Will that time be October?

The BLS view of the economy is likely to catch up to reality in the next few reports, which should show that US inflation is really starting to cool. The car market’s slowdown is likely to show up in future reports. The bureau’s next CPI report is due on Oct. Prices rose by 0.1% last month, according to the Bureau of Labor Statistics (BLS), whereas economists had expected inflation to fall by 0.1%. Economists had based their forecasts on declining prices for gas, used cars, and retail goods, which have shown up in other reports. [record-breaking drop](https://www.autoremarketing.com/wholesale/manheim-index-makes-nearly-record-breaking-drop-august)as measured by the Manheim Index.

Inflation did not ease as expected in August, with an 8.3 percent rise in the Consumer Price Index showing that the squeeze on consumers remains acute.

The global economy is slowing sharply, and threats remain to the American recovery if European sanctions force millions of barrels of Russian oil off the global market in the months to come. The National Federation of Independent Business reported on Tuesday that its Small Business Optimism Index rose in August as inflation anxiety eased, continuing a rebound from its depths earlier this year. [have](https://www.nytimes.com/2022/06/10/business/economy/may-2022-cpi-inflation.html) [repeatedly](https://www.nytimes.com/live/2022/07/13/business/cpi-report-inflation) [predicted](https://www.nytimes.com/2022/02/10/business/economy/inflation-cpi-january-2022.html)that inflation was about to decelerate only to have those expectations scuppered. Biden and his party, as Democrats seek to retain control of the House and Senate. Biden has claimed progress in the fight against inflation, including with the signing last month of an energy, health care and tax bill that Democrats called the Inflation Reduction Act. “And then of course all of this is further exacerbated by what’s going on with the war in the Ukraine.” That could be poised to continue, because those prices are closely linked to wages, which have been climbing notably as a result of a strong job market with low unemployment and worker shortages that span many fields. Last Thursday, India also [banned exports](https://www.wsj.com/articles/indias-rice-export-ban-will-further-strain-global-food-supplies-11662722548) of one kind of rice and put a tax on others, in an effort to shore up supplies and fight domestic inflation. After peaking at $5.02 in June, gasoline prices have dropped for 91 straight days, and the national average stood at just over $3.70 a gallon on Tuesday, data from AAA show. A bout of bird flu earlier this year made chickens and eggs scarce, driving up the prices of both. Stock prices swooned as Wall Street digested the possibility that the Fed might need to be even more aggressive in constraining the economy in order to wrangle an inflation problem that is worse than anything America has faced since the 1980s. Food prices in August were up 11.4 percent from the same month a year ago.

U.S. stocks fell sharply at the market open after August inflation data came in hotter than expected.

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At 8:30 a.m., the Bureau of Labor Statistics will release the August report on the Consumer Price Index (CPI). There is good reason to expect top-line ...

The top-line will be driven by the 13 percent decline in gasoline prices and 7 percent decline in oil prices. The Fed will be making real progress on inflation when shelter price inflation starts moving downward in a significant and sustained manner, and not before. The same will be true today in the August numbers.

Rates traders are now betting the Federal Reserve will lift its benchmark rate by at least three-quarters of a percentage point next week, with some chatter ...

NEW YORK, Sept 14 — A broad sell-off sent US stocks reeling on Tuesday after a hotter-than-expected inflation report dashed hopes that the Federal Reserve ...

“The Fed has increased (interest rates) by three full percentage points in the last six months,” Nolte said. The report points to “very persistent inflation and that means the Fed is going to remain engaged and raise rates,” Nolte added. But we will feel it.” “We are at recession’s doorstep.” Worries persist that a prolonged period of policy tightening from the Fed could tip the economy over the brink of recession. “And that’s an anathema to equities.” Financial markets have fully priced in an interest rate hike of at least 75 basis points at the conclusion of the FOMC’s policy meeting next week, with a 32 per cent probability of a super-sized, full-percentage-point increase to the Fed funds target rate, according to CME’s FedWatch tool. The Labour Department’s consumer price index (CPI) came in above consensus, interrupting a cooling trend and throwing cold water on hopes that the Federal Reserve could relent after September and ease up on its interest rate hikes. “(The sell-off) is not a surprise given the rally running up to the data,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

NEW YORK (Sept 14): A broad sell-off sent U.S. stocks reeling on Tuesday after a hotter-than-expected inflation report dashed hopes that the Federal Reserve ...

"The Fed has increased (interest rates) by three full percentage points in the last six months," Nolte said. "And that’s an anathema to equities." But we will feel it." NEW YORK (Sept 14): A broad sell-off sent U.S. The report points to "very persistent inflation and that means the Fed is going to remain engaged and raise rates," Nolte added. stocks reeling on Tuesday after a hotter-than-expected inflation report dashed hopes that the Federal Reserve could relent and scale back its policy tightening in the coming months.

The Dow Jones Industrial Average slid 1276 points, or 3.9%, to 31105, the S&P 500 tumbled 178 points, or 4.3%, to 3933 and the Nasdaq...

The inflation data is due out at 8.30am ET. A 75- basis point hike this month, will be the third such increase this year as rate setters seek to tame inflation which, as things stand, remains around 40-year highs. The Fed is almost fully expected to raise the rates by another 75 basis points at next week’s FOMC (Federal Open Market Committee) meeting. What will happen after is, however, up to the data,” she said. “Importantly for financial markets (and the Fed), surveys of consumers’ inflation expectations are coming down from highs in line with peaking actual inflation,” he said. These increases were mostly offset by a 10.6% decline in the gasoline index,” the Bureau said. These expectations are likely to shore up stock prices for now. Market expectations point to a slowing inflation rate, with the headline figure seen easing steadily to 8.1% in August from 8.5% in July and the peak of 9.1% in June. US stocks were expected to continue their recent rally at the start on Tuesday ahead of crucial inflation data for August which is predicted to show that price pressures in the world’s biggest economy may have already peaked. US stocks plunged ahead of the open on Tuesday after new data from the US Bureau of Labor Statistics show inflation increased more than expected in August, likely locking in a 75 basis point interest rate hike from the Fed later in the month. US stocks opened firmly in the red after the release of hotter-than-expected inflation data for August which is expected to have locked in a 75 basis point interest rate hike by the Fed over a more moderate 50 basis point increase later this month. US indices were in the red at midday, as investor sentiment soured over the US Federal Reserve's plan to increase interest rates until it is clear inflation is on a downward path.

The Consumer Price Index (CPI) for August is out. It increased 8.3 percent over the last year, down from 8.5 percent in July.

But the high Core CPI means that the Fed still has plenty of work to do. Now that energy prices are coming down, August’s Core CPI increase of 0.6 percent is higher than the overall CPI increase of 0.1 percent. Monetary inflation is a price in the absolute price level. That means monetary inflation is still high, which is what we should expect given the timing of the Fed’s COVID-related money creation spree, along with the series of multi-trillion-dollar spending bills from Congress and Presidents Trump and Biden. It is still likely that monetary inflation has peaked, as have energy prices. The price level is literally the exchange rate between money and stuff. Only a change in the supply of money itself, relative to the supply of real goods and services, can do that. [supply shocks](https://www.nationalreview.com/2022/03/supply-shocks-are-not-inflation/) only raise the prices of some goods. The Core CPI number is concerning, rising from 0.3 percent in July to 0.6 percent in August. Today’s CPI release points them in the direction of acting more decisively. The month-over-month increase in August was 0.1 percent, up from 0.0 percent in July. It increased 8.3 percent over the last year, down from 8.5 percent in July.

Blinded by hope the worst had passed, investors who spent recent sessions warming to bullish bets in stocks, bonds and foreign exchange paid a stiff price ...

Relative peace in the bond market was shattered, with two-year yields climbing the most in more than a month. Equity traders saw virtually all of a four-day surge wiped out after the government said August inflation was hotter than feared. [bullish bets](https://www.bloomberg.com/news/articles/2022-09-13/options-gamblers-crushed-in-latest-cpi-drama-for-stock-market) in stocks, bonds and foreign exchange paid a stiff price for their optimism Tuesday.

EUR/USD has rejected trend resistance at 1.02 thus far. Economists at TD Securities expect bulls to be disappointed if the pair continues to trade bel.

Ethereum Classic price shows a recent sell-off that is in line with the crash in Bitcoin price. Mixed concerns over inflation and China join a light calendar to portray the metal’s inaction during early Wednesday morning in Europe. AUD/USD is recovering towards 0.6750, as risk sentiment improves amid hopes of more Chinese stimulus and a rebound in commodity prices. The author makes no representations as to the accuracy, completeness, or suitability of this information. The US dollar cheers upbeat inflation and hawkish Fed bets. The author has not received compensation for writing this article, other than from FXStreet. The author will not be held responsible for information that is found at the end of links posted on this page. It also does not guarantee that this information is of a timely nature. Asset prices remain linked to the latter, which has only worsened and should spark concern about a premature rally in FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. EUR/USD has rejected trend resistance at 1.02 thus far.

WASHINGTON: The US Labour Department reported Tuesday that the country's consumer inflation in August surged 8.3 per cent from a year ago, slightly do...

It lifted the rate by three-quarters of a percentage point in June and July, the most aggressive hikes in decades. The food index increased 11.4 per cent over the last year, the largest 12-month increase since the period ending May 1979. Even with the recent drop, the energy index rose 23.8 per cent over the past 12 months. In May, the Fed increased the rate by half a percentage point. The latest inflation report showed that the so-called core CPI, which excludes food and energy, rose 0.6 per cent in August following a 0.3-per cent rise the prior month. The June CPI of 9.1 per cent marks the largest 12-month increase since the period ending November 1981.

The hotter-than-expected inflation print surprised asset managers and hedge funds that were betting the dollar may have reached its peak.

Englander said the latest consumer-price index data was “just awful on all counts.”\n\nThe rally in the world’s reserve currency has become front and center for investors because it could strain economies overseas, particularly emerging markets. Traders at Wall Street banks said investors who started to sell the dollar against other currencies reversed course this morning, prompting the moves.\n\nThe gains in the dollar come alongside a drop in stocks. Some analysts say the data could embolden the Federal Reserve to consider a full percentage point rate increase to tame rising consumer prices.\n\n“There is no lipstick whatsoever on this pig,” said Steve Englander, head of North America macro strategy at Standard Chartered PLC.

The dollar climbed close to a 24-year peak against the yen on Wednesday amid a jump in U.S. yields after hotter-than-expected inflation boosted bets for ...

dollar at this stage, which is still not seeing any signs of softness. The 10-year yield last stood at 3.4178%. [read more](/markets/us/fed-seen-delivering-75-basis-point-hike-next-week-with-more-come-2022-09-13/) "It's very hard to bet against a strong U.S. [read more](/markets/us/monthly-us-consumer-prices-unexpectedly-rise-august-core-inflation-picks-up-2022-09-13/) The U.S. [read more](/markets/europe/japans-kanda-will-respond-appropriately-yen-moves-2022-09-14/) [The Thomson Reuters Trust Principles.](https://www.thomsonreuters.com/en/about-us/trust-principles.html) dollar index , which measures the currency against six major peers including the yen, was 0.2% down at 109.6. Register now for FREE unlimited access to Reuters.com

Here is what you need to know on Wednesday, September 14: Following Tuesday's impressive rally fueled by hot August inflation data from the US, the US.

GBP/USD manages to hold steady at around 1.1500 in the early European session on Wednesday. The author makes no representations as to the accuracy, completeness, or suitability of this information. [Ethereum Price Prediction: ](https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-prediction-knife-catching-103-daltons-third-rule-202209132327)Knife Catching 103 - Dalton's Third Rule. The author has not received compensation for writing this article, other than from FXStreet. The author will not be held responsible for information that is found at the end of links posted on this page. [Ethereum](https://www.fxstreet.com/cryptocurrencies/ethereum) is already down nearly 12% this week following Tuesday's sharp decline. According to the news outlet, this is a sign that the BoJ could be making preparations for an intervention in the market. XAU/USD was last seen moving sideways near that level amid a lack of action in US yields. [US Inflation Analysis: Soaring Core CPI smashes Fed pivot narrative](https://www.fxstreet.com/analysis/us-inflation-analysis-soaring-core-cpi-smashes-fed-pivot-narrative-king-dollar-back-on-the-throne-202209131329), King Dollar back on the throne. Nikkei reported earlier in the day that the Bank of Japan conducted a foreign exchange "check" to see what market participants view the JPY's valuation. GBP/USD is having a difficult time staging a rebound and trading in negative territory below 1.1500. [Consumer Price Index](https://www.fxstreet.com/economic-calendar/united-states) (CPI) climbed to 6.3% on a yearly basis in August from 5.9% in July, the dollar gathered strength amid renewed hawkish Fed bets.

Asia-Pacific markets are set to fall after Wall Street suffered heavy losses following a hotter-than-expected CPI report. Bitcoin prices may fall more ...

[Starts in:Live now:Sep 20( 02:09 GMT )Weekly Commodities Trading Prep](https://www.dailyfx.com/webinars/261117483) [Gold](https://www.dailyfx.com/gold-price) and [silver prices](https://www.dailyfx.com/silver-prices) moved lower. The [Euro](https://www.dailyfx.com/eur) and [British Pound](https://www.dailyfx.com/gbp) were also sharply lower, although comparatively better than their APAC peers. Bitcoin fell around 10%, and [Ethereum](https://www.dailyfx.com/ether-eth) dropped over 7%. [Kiwi](https://www.dailyfx.com/nzd-usd) Dollar were two of the biggest losers. Those oscillators support the case for further losses in the days ahead. It is unclear if the Public Company Accounting Oversight Board’s auditors will be permitted to sidestep quarantine rules, which would delay the start of work by a few days. New Zealand GDP is seen rising at 1% on a q/q basis. Overnight index swaps show a 35% chance for a 100-basis point rate increase at the September 22 [FOMC](https://www.dailyfx.com/fomc) policy announcement after the CPI print. The Aussie Dollar and A surprisingly strong US consumer price index (CPI) print for August sent short-term Treasury yields higher, which charged the US Dollar. While the headline rate eased from 8.5%, core inflation—a gauge that strips out food and energy prices—rose 0.6% from July. [Nasdaq](https://www.dailyfx.com/nas-100)-100 Index (NDX) fell 5.54%, its worst daily percentage decline of the year.