American consumer prices tack on slowly

American consumer prices tack on slowly

In August, American consumer prices rallied less than anticipated because leaps in gasoline as well as rents were compensated by dives in healthcare and also apparel costs, while underlying inflation pressures decelerated too.

Notwithstanding the mild consumer price jumps in August, inflation is still backed by a tightening labor market as well as firm economic surge. On Thursday, labor market strength was underpinned by other reports disclosing that the number of US citizens who file for unemployment aid decreased to a 49-year minimum the previous week.

With tight labor market conditions, accelerating wage surge and input prices being backed by capacity constraints as well as recently imposed levies, there’s much of upward pressure on prices, as some financial analysts pointed out.

In August, the Consumer Price Index rallied by 0.2% after a similar jump in July. For the 12 months through August, the CPI ascended by 2.7%, decelerating from July's 2.9% leap. Without food and energy, the CPI added 0.1%. Additionally, the core CPI had leapt by 0.2% for three straight months.

According to the inflation report, in August, producer prices dipped for the first time for 1-1/2 years.

The evergreen buck that added over 6% in 2018 versus the currencies of America’s key trade partners, is putting pressure on the prices of products.

August's mild consumer price leaps didn’t change hopes that the Fed will have rates lifted at its September 25-26 policy gathering. The key American financial institution has increased rates twice in 2018.

A worsening trade conflict between China and America is anticipated to back inflation.

Minutes of the Fed’s July 31–August 1 gathering uncovered in August disclosed  several comments that jumps in the prices of particular products, including those induced by the levy hikes, would probably put upward pressure on the inflation rate in the short term.

 

Similar

US earnings in January 2021: what you need to know
US earnings in January 2021: what you need to know

We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.

Latest news

USD strengthened as optimism waned
USD strengthened as optimism waned

The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.

Stocks up, USD down
Stocks up, USD down

S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

Manager will call your number

Correct number

Your request is accepted

Manager will call your number

Next callback request for this phone number
will be available in {time}

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera