US core CPI "explodes" to hit doves!
On Thursday (September 12), US CPI suppressed 50 basis points of "dovish" rate cut pricing
The annual rate of US CPI inflation in August fell from 2.9% in July to 2.5%, the lowest level since April 2018.
In August, the annual rate of core CPI, excluding volatile food and energy prices, remained unchanged at 3.2%, in line with expectations.
The monthly CPI rose 0.2% and the core CPI rose 0.3%, the largest increase in 4 months, both of which were higher than market expectations.
Neil Birrell, chief investment officer of Premier Miton Investors, also believes that the possibility of the Fed cutting interest rates by 50 basis points next week has been hit hard by this report, but it is not enough to prevent the bank from cutting interest rates.
