Inflation rises 2.5% in August, less than expected
Published On Sep 11, 2024, 4:33 AM
Inflation in the U.S. rose by 2.5% in August year-over-year, which is lower than expected and marks the slowest increase in over three years. The consumer price index (CPI) increased by 0.2% from the previous month, supporting expectations that the Federal Reserve will likely cut interest rates in its upcoming meeting. Core prices, which exclude volatile categories like food and energy, saw a 0.3% increase, slightly higher than predictions. The report indicates that while inflationary pressures are easing, they still remain above the Fed's 2% target, causing ongoing challenges for many households.
Stock Forecasts
XHB
Positive
With the inflation rate slowing down and the possibility of an interest rate cut from the Federal Reserve, the market may see positive movement in sectors that benefit from lower interest rates, such as real estate and consumer discretionary stocks.
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