U.S. August CPI rose 0.4% MoM, in line with consensus; gasoline jumped 3.9% and
accounted for over one-third of the monthly rise, while shelter accelerated 0.3%
MoM, the biggest increase in three months. Core CPI (ex food and energy) rose
0.3% MoM — only 9 of 73 surveyed economists had forecast that — with wireless
phone service, airfares, used cars and education the largest contributors.
Headline YoY inflation was 3.4% and core YoY 2.4%, both matching medians; core
YoY was the smallest since spring 2021. Prices for computer software and
accessories surged 25.4% YoY, a record, reflecting AI-related investment.
Economists say the print increases the case for a Fed rate hike on Sept. 16; a
Fed-watched gauge of the share of categories with rising prices did not retreat.
U.S. stock futures held gains after the release; the S&P 500 opened up about
0.9% and the 2‑yr yield, after touching the highest level of 2024 earlier, was
roughly flat at 4.59%.
