Quick review of US August CPI data

The U.S. CPI in August increased by 2.5% year-on-year, in line with expectations, with a previous value of 2.9%. The U.S. core CPI in August increased by 3.2% year-on-year, also in line with expectations, with a previous value of 3.2%; the month-on-month growth rate of the U.S. core CPI in August rose to 0.3%, higher than the expected value and the previous value of 0.2%. The data shows that with the accelerated housing costs, the unexpected rise in potential inflation in August weakened the possibility of a significant interest rate cut by the Federal Reserve next week. Although this data will not prevent the Fed from cutting interest rates next week, it reduces the likelihood of a significant rate cut. Nevertheless, policymakers have clearly stated that they are highly concerned about the weakness in the labor market, which is more likely to drive policy discussions and decisions in the coming months. Before the meetings in November and December, they will need to consider more data