{"id":2030313,"date":"2023-09-13T09:53:01","date_gmt":"2023-09-13T13:53:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-annual-inflation-reaccelerates-to-3-7-percent-in-august-as-oil-prices-surge\/"},"modified":"2023-09-13T09:55:32","modified_gmt":"2023-09-13T13:55:32","slug":"us-annual-inflation-reaccelerates-to-3-7-percent-in-august-as-oil-prices-surge","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-annual-inflation-reaccelerates-to-3-7-percent-in-august-as-oil-prices-surge\/","title":{"rendered":"US inflation jumps to 3.7% in August due to surging oil prices."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-annual-inflation-reaccelerates-to-3-7-percent-in-august-as-oil-prices-surge%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2030313&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div id=\"post_content\" class=\"post_content\" data-post-content=\"true\">\n<p>The U.S. annual\u2063 inflation rate rose to 3.7 percent\u200d in August,\u2064 surpassing economists&#8217; expectations of 3.6 percent. This increase follows a consumer \u2064price index (CPI) reading of 3.2 percent in July.<\/p>\n<div class=\"my-5\">\n<p>\u2063 According to the \u2064 <a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\" target=\"_blank\" rel=\"noopener\">Bureau of Labor Statistics (BLS)<\/a>, the monthly inflation rate jumped 0.6 percent,\u200b up \u2064from 0.2 percent in the previous month, aligning with market estimates.<\/p>\n<\/div>\n<p>Core inflation, which excludes the volatile food and\u200d energy sectors, eased \u200cto 4.3 \u200bpercent, down from 4.7 percent. This also met the consensus estimate.\u2063 The core CPI edged up 0.3 percent, up from 0.2 percent.<\/p>\n<div class=\"shortcode\">\n<div id=\"in_article_related_stories\" class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\">\n<div class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/us\/georgia-suspends-gas-tax-amid-emergency-declaration-over-inflation-5490237\">Georgia Suspends Gas \u2063Tax Amid Emergency Declaration Over \u2062Inflation<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/12\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[120px]\"><\/div>\n<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/article\/federal-reserves-key-inflation-measure-jumps-incomes-slow-5484220\">Federal Reserve&#8217;s Key Inflation \u2064Measure Jumps; Incomes Slow<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">8\/31\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[120px]\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>The annual inflation rate accelerated\u2063 due to a significant surge in energy prices, \u200bwith gasoline soaring 10.6 percent and fuel oil climbing 9.1 percent month-over-month.<\/p>\n<p>Electricity costs slowed to an annualized pace of 2.1 percent,\u2064 while utility-piped natural \u200bgas service plummeted to 16.5 percent\u2064 year-over-year.<\/p>\n<p>Shelter and \u2064food rose 0.3 percent and 0.2 percent,\u2064 respectively.<\/p>\n<div class=\"shortcode post-related-videos\">\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/div>\n<\/div>\n<p>Within the food index, the numbers were mixed. Supermarket prices rose 0.2 percent and \u200dwere 4.3 percent higher than they were at the same time a year ago.<\/p>\n<p>On a month-over-month basis, \u200dbread tumbled 0.8 percent, eggs plunged 2.5 percent,\u200b milk was flat, coffee dropped 0.7 percent, and\u200b fresh fruits and vegetables slipped 0.2 percent. However, major kitchen items swelled \u2064last month, such as beef and veal (1.2\u200c percent), pork (2.2 percent), chicken (1.3 percent), and fish and seafood (0.9 percent).<\/p>\n<p>The shelter index, which accounts \u2063for about one-third of the overall \u2064CPI \u200dreport, remains\u2062 elevated at an annual rate of 7.3 percent, \u200dand rent of primary \u2064residence \u2063climbed to 7.8 percent. From July \u200cto August, rents increased 0.3 percent.<\/p>\n<p>Transportation services also lifted the CPI, surging 2 percent. New vehicles were 0.3 percent more expensive, while \u2062used cars and trucks fell 1.2 percent. Apparel inched 0.2 percent \u200bhigher. Medical care commodities advanced 0.6 percent.<\/p>\n<p>Annualized services inflation maintained its\u2063 downward trend, slowing to \u20625.4 \u2064percent, the lowest since April 2022.<\/p>\n<p>The U.S. financial markets dipped in pre-market trading following the CPI data, with \u200cthe leading benchmark indexes down about 0.2 percent.<\/p>\n<p>U.S. Treasury\u2064 yields were mixed, with the\u200c 10-year yield adding 2.4 basis points to nearly 4.29 percent. The 2-year yield shed about 1 basis point to about 5 percent.<\/p>\n<p>The U.S. Dollar Index (DXY),\u2064 a measurement of the greenback \u200cagainst a basket of currencies, recorded modest gains and inched toward the key\u200c 105.00 mark.<\/p>\n<div class=\"my-5\">\n<p>\u2062 The producer price index (PPI), which typically\u200b leads the CPI, could \u2062be the next to reveal a \u200creacceleration, with the consensus estimate showing a jump to 1.2 percent year-over-year and an increase of 0.4 percent \u200cmonth-over-month.<\/p>\n<h2>Inflation and Interest Rates<\/h2>\n<p>\u200d With \u2063energy commodities trending upward, forecasts for the \u200cSeptember \u200dCPI highlight that inflation will continue to be elevated \u200dheading into the fall.<\/p>\n<\/div>\n<div class=\"my-5\">\n<p>\u200b The Federal Reserve Bank of Cleveland&#8217;s <a href=\"https:\/\/www.clevelandfed.org\/indicators-and-data\/inflation-nowcasting\" target=\"_blank\" rel=\"noopener\">Inflation Nowcasting model<\/a> \u200c estimates\u2063 the annual inflation rate \u2064will be 3.8 percent, and\u2063 the CPI will climb 0.4 percent month-over-month.<\/p>\n<\/div>\n<p>Despite the uptick in inflation, many\u2064 economists\u2062 assert that price pressures are moderating, forcing them to\u2062 suggest that a \u200dsoft landing is\u200d achievable.<\/p>\n<p>Goldman\u2063 Sachs \u2062analysts anticipate that inflation &#8220;will fall quite \u200da\u200c bit further,&#8221; supporting the case that the \u200cU.S. \u200dcentral bank is likely finished hiking interest rates \u2063and could potentially cut them \u2062in the second quarter of 2024.<\/p>\n<div class=\"my-5\">\n<p>&#8220;Fed officials are unlikely to move quickly toward easier policy unless growth slows more than we are forecasting in coming \u200bquarters. We\u200d therefore expect only very gradual cuts of 25bp per quarter starting\u200d in 2024Q2,&#8221; the \u200dbank analysts <a href=\"https:\/\/www.gspublishing.com\/content\/research\/en\/reports\/2023\/09\/05\/0853dce1-48fb-4dec-8b04-c465cc6406ee.html?chl=em&#038;plt=briefings&#038;cid=906&#038;plc=body\" target=\"_blank\" rel=\"noopener\">wrote<\/a> in a research note.<br \/>\n\u200c<\/p>\n<\/div>\n<p>During his keynote address at last month&#8217;s Jackson Hole economic symposium, Fed Chair Jerome Powell warned that the institution could continue raising interest rates because inflation is &#8220;too high.&#8221; But the Fed would &#8220;proceed carefully&#8221; whatever the\u2064 policy decision made by the Federal Open Market Committee (FOMC).<\/p>\n<p>Mohamed El-Erian, a top economist, thinks this will not persuade the Federal Reserve to pull the trigger on a rate hike this\u200b month.<\/p>\n<div class=\"my-5\">\n<p>\u200c&#8221;The popular media headlines will focus\u2062 on an inflation rate that is \u2062now 3.7%, the second consecutive month up. Core is\u200b lower at 4.3%, with a question on the possible pass-through from higher oil,&#8221; he wrote \u2062on <a href=\"https:\/\/twitter.com\/elerianm\/status\/1701940389115039955\" target=\"_blank\" rel=\"noopener\">X<\/a>, previously\u200c known as Twitter. &#8220;None of this \u2062is likely to deter the Fed from leaving rates\u2064 unchanged next week. \u2063It does, however, add \u200dsome\u200b uncertainty\u200b about its November 1st decision.&#8221;<\/p>\n<\/div>\n<div class=\"my-5\">\n<p>According\u200d to the <a href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\" target=\"_blank\" rel=\"noopener\">CME FedWatch \u2063Tool<\/a>, \u200bthe futures market is pricing in a rate pause at \u200bthis\u200d month&#8217;s two-day \u2064meeting, leaving the benchmark fed funds rate at\u200d a target of\u200d 5.25 percent and 5.5 percent.<\/p>\n<\/div>\n<p>Giuseppe Sette, the president of investment research firm Toggle Ai, \u200bthinks if core CPI \u2064stabilizes below 4 percent, &#8220;then the hiking cycle is well and truly \u2062defunct.&#8221; &#8220;There will be no hike\u200c in September or \u200bafterwards,&#8221; he said.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. annual inflation rate exceeded economists&#8217; expectations, reaching 3.7 percent in August, up from 3.2 percent in July. The Bureau of Labor Statistics reported a monthly inflation rate of 0.6 percent, a significant increase from 0.2 percent in the previous month.<\/p>\n","protected":false},"author":278,"featured_media":2030314,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"US inflation jumps to 3.7% in August due to surging oil prices.","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2030313","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"US inflation jumps to 3.7% in August due to surging oil prices.","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2030313","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/278"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2030313"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2030313\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2030314"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2030313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2030313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2030313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}