The subject increased inflation to USA As expected in August, maintaining the US Federal Bank on an interest rates on interest rates next week.
The basic consumer price index (inflation), excluding the frequently unstable food and energy categories, increased by 0.3% from July, according to data from the US Statistics Office published on Thursday (11.9.25). By incorporating these components, the total CPC increased by 0.4%, the highest increase since the beginning of the year, according to Bloomberg.
The prices of goods, excluding food and energy products, have accelerated. This reflected the increases in prices of new and used cars, clothing and devices. In the service sector, airline tickets have risen the largest rise for more than three years. Several costs of households have also increased, including groceries, gasoline, electricity and car repairs.
The report indicates that inflation continues to remain. President Donald Trump’s world duties affect the prices of certain goods, while ongoing increases in the cost of services may exert a more persistent pressure on overall inflation.
Even so, Fed officials are widely expected to reduce interest rates for the first time this year at their meeting next week, after a series of weak employment data. However, consistent inflation, if maintained, can complicate the course for additional reductions in subsequent meetings.
Futal debt contracts recorded profits and US government bonds rose. Policy-executives will see the latest consumer climate and retail data prior to their meeting on September 16-17. Investors expect the Fed to reduce interest rates twice this year after that.
Refuge
One of the key inflation factors in recent years has been the cost of housing – the largest category in the service sector. Accommodation prices rose by 0.4%, the highest since the beginning of the year and reflects increases in both rents and the highest increase in hotels in November.
Another indicator of services closely monitored by the Fed, which deducts the cost of housing and energy, has fallen somewhat, thanks to the reductions in medical care, recreation and car rentals. While central bankers have emphasized the importance of examining such an index when evaluating the overall course of inflation, they calculate it on the basis of a separate index.
This measure – known as the prices of personal consumer costs – does not pay as much emphasis on protecting private housing as the CPC. The PCE index is based on the ICC, as well as another publication on producer prices, which showed that the categories that supply PCE were mixed.
The supervisory authority of the Ministry of Labor, which oversees BLS, said on Wednesday that it is launching a revision of the organization’s challenges in the collection and reporting of basic financial data. In recent months, BLS has been forced to inhibit the collection of ICT data in several US metropolitan areas and is increasingly based on a technique to fill the gaps. The revision will also consider BLS’s revisions on employment data, which have caused wider criticism, especially by the White House.
Central bankers also pay close attention to wage increases, as it can help to formulate consumer spending expectations – the main driving force of the economy. A separate exhibition on Thursday that combines inflation data with recent wage data showed that the actual average hourly earnings increased by 0.7% compared to the previous year, the lowest level for more than a year.
Another publication showed that initial applications for unemployment benefits in the US have increased last week to the highest level for almost four years. Weekly submissions may be unstable during holidays and the weekly data included on the day of work.