US inflation in August stood at 3.4 percent (compared to the same month last year), exactly as economists had anticipated, following 3.4 percent in July as well. The core inflation rate, which excludes the drivers energy and food, was also right on estimate at 2.4 percent (previously: 2.5 percent).
The still high price level is unlikely to have alleviated concerns about interest rate cuts at all. After all, the core inflation rate was 0.1 percentage points higher than expected (compared to the previous month).
At the Fed policy meeting on September 16, investors fear a potential rate hike by the US central bank of a quarter of a percentage point. The CME Group's „FedWatch Tool“ estimates the probability of said scenario at 83.4 percent.
