Key Facts
• U.S. consumer prices in August rose 2.9% year-on-year, matching market expectations.
• The growth rate accelerated for the first time in two months compared to the previous month.
• Excluding food and energy, the index increased by 3.1%, also aligning with forecasts.
• Tariff policies under the Trump administration have begun impacting prices.
• The Federal Reserve will hold a two-day meeting starting September 16 to decide monetary policy.
• Market sentiment strongly anticipates an interest rate cut by the Federal Reserve.
• The Dow Jones Industrial Average surged over 500 points temporarily due to rate cut expectations.
Summary
The U.S. Labor Department reported a 2.9% year-on-year increase in the Consumer Price Index (CPI) for August, consistent with market predictions. This marks an acceleration in the growth rate for the first time in two months. Excluding volatile food and energy prices, the core CPI rose by 3.1%, also meeting expectations. The Trump administration’s tariff policies are gradually influencing price levels. The Federal Reserve is set to convene on September 16 for a two-day meeting to determine monetary policy, with markets widely expecting an interest rate cut. Optimism surrounding the potential rate cut drove the Dow Jones Industrial Average to rise over 500 points temporarily.
