On September 11, institutional analysts said that the overall CPI monthly rate was slightly higher than expected. After the data was released, the yields in the US Treasury market fell slightly across the board, indicating that the market believed the data had not worsened, which was a relief. What Federal Reserve Chairman Powell has been focusing on for some time is the annual rate.

The core CPI annual rate for August was 3.1%, the same as in July, which was in line with expectations. This also shows that the inflation situation has not worsened. The overall CPI annual rate rose to 2.9%, slightly higher than the 2.7% in July. The report showed that housing rose by 0.4% in August, the largest monthly increase of all items. Food prices are also rising, with the food index rising 0.5% this month, the food-at-home index rising 0.6%, and the food-away-from-home index rising 0.3%.

This report, which was basically in line with expectations, paved the way for the Federal Reserve to cut interest rates next week, and the market has almost fully priced in expectations for three interest rate cuts by the end of the year. (Golden Ten)