US Consumer Inflation Rises 3.4% in August, Rate Hike Likely
· Business · Economic Times, Reuters, CNBC
US consumer inflation rose 3.4% year-on-year in August, driven primarily by rebounding gasoline costs. The Labor Department reported a 0.4% monthly increase in the Consumer Price Index, matching economist forecasts. Core inflation, which excludes volatile food and energy, rose 0.3% for the month. Financial markets now estimate a 70% probability that the Federal Reserve will implement a 25-basis-point interest rate hike next week.
Why it matters
A potential interest rate hike by the US Federal Reserve can strengthen the dollar and influence capital outflows from emerging markets like India, impacting the rupee's valuation.
Read the original report — Economic Times
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