The US consumer price index rose to 2.9% per year in August, data showed Thursday, with CPI taking its biggest monthly jump since January. More closely watched by Fed officials, annual core inflation rose to 3.1%.
The Federal Reserve’s inflation target is 2%.
Meanwhile, the Labor Bureau reported that unemployment compensation claims have reached the highest level since October 2021, with weekly unemployment claims rising more than expected.
“The latest set of economies is likely to cause some additional complications for FOMC policymakers as they consider decision-making ahead of the FOMC meeting on September 16-17,” HSBC US economist Ryan Wang said in a memo on Friday.
“Because of the obvious tension between both sides of the committee’s dual duties (inflation and employment), the outcome of the meeting itself is expected to reduce the scope of the federal fund target by 25 bp to 4.00-4.25%.
