Analysis: U.S. consumer prices rose more than expected in August, but that won't stop the Federal Reserve from cutting interest rates next week

TechFlowSep 11, 2025
#Macro
On September 11, according to Jinshi Data, the U.S. CPI increase in August was higher than expected, and the annual inflation rate increased by the largest amount in seven months, but it is expected that these data will not prevent the Federal Reserve from cutting interest rates next week due to the weak job market. Data on Thursday showed that the CPI rose 0.4% in August after rising 0.2% in July. In the 12 months ending in August, the CPI rose 2.9%, the largest increase since January, compared with 2.7% in July. After recent pessimistic news in the job market, the CPI report may trigger concerns about stagflation. The impact of U.S. President Trump's comprehensive tariffs is gradual, but prices may accelerate in the coming months as companies have now exhausted pre-tariff inventories. For some time, business surveys have been suggesting that prices are about to rise. "There is a lot of evidence that more tariff-related inflation is coming, although it may take several months to fully pass through," said Stephen Stanley, chief economist at Santander Bank U.S. Capital Markets. [Techflow]
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Analysis: U.S. consumer prices rose more than expected in August, but that won't stop the Federal Reserve from cutting interest rates next week

TechFlowSep 11, 2025
#Macro
On September 11, according to Jinshi Data, the U.S. CPI increase in August was higher than expected, and the annual inflation rate increased by the largest amount in seven months, but it is expected that these data will not prevent the Federal Reserve from cutting interest rates next week due to the weak job market. Data on Thursday showed that the CPI rose 0.4% in August after rising 0.2% in July. In the 12 months ending in August, the CPI rose 2.9%, the largest increase since January, compared with 2.7% in July. After recent pessimistic news in the job market, the CPI report may trigger concerns about stagflation. The impact of U.S. President Trump's comprehensive tariffs is gradual, but prices may accelerate in the coming months as companies have now exhausted pre-tariff inventories. For some time, business surveys have been suggesting that prices are about to rise. "There is a lot of evidence that more tariff-related inflation is coming, although it may take several months to fully pass through," said Stephen Stanley, chief economist at Santander Bank U.S. Capital Markets. [Techflow]
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