U.S. CPI Increased 0.4% in August, Core Rate Matches Forecast
August U.S. inflation was higher than expected, with the Consumer Price Index (CPI) rising 0.4% compared to the 0.3% forecast.
Year-over-year CPI increased by 2.9%, aligning with predictions but up from 2.7% in July.
Core CPI, excluding food and energy, rose 0.3% month-on-month and 3.1% year-on-year, meeting expectations.
Bitcoin decreased by about 0.5%, from $114,300 to $113,700 following the data release.
U.S. stock index futures were slightly positive, up by 0.1% overall. The 10-year Treasury yield fell by five basis points to 4.00%, while the dollar slightly strengthened.
Gold prices increased, reducing earlier losses from 0.4% to 0.15% at $3,675 per ounce.
The weekly Initial Jobless Claims report showed a rise to 263,000, exceeding expectations of 235,000, contributing to market movements.
Prior to the CPI release, markets anticipated a 92% probability of a 25 basis point Fed rate cut, influenced by previous soft job reports and weak PPI numbers.
