TECH - Inflation Ticks Higher UAW Strikes Arm's Record-Breaking IPO: The Week In The Markets | Benzinga
This week witnessed a flurry of economic data and market-shaping events ahead of the crucial
Sept. 20 FOMC meeting.
Inflation Surges, Driven By Gas
In August, the annual inflation rate in the United States saw its second consecutive increase, reaching 3.7%. This was a notable uptick from July’s 3.2% figure, surpassing expectations of 3.6%. On a monthly basis, the Consumer Price Index surged by 0.6%, marking its most substantial monthly increase since June 2022.
This spike was primarily fueled by a substantial 6% rise in gasoline prices. In a parallel trend, the Producer Price Index also displayed robust growth in August, with a 0.7% monthly increase, the highest level recorded since June 2022, outstripping market forecasts of a 0.4% uptick.
Core Inflation Downtrend Continues, Investor Confidence Holds
A different perspective emerges when volatile food and energy components are excluded from inflation calculations, an aspect closely monitored by the Federal Reserve. The core CPI experienced a slight decrease from 4.7% to 4.3% year-on-year, while the core PPI dropped to a year-on-year rate of 2.2%,
reaching its lowest point since January 2021.
This favorable trend in core inflation contributed to the maintenance of positive market sentiment. Investors displayed a high level of confidence ...