The US Consumer Price Index (CPI) data showed that the inflation has cooled to 2.6% in August, down from the market expectations. The much-awaited inflation is one of the crucial metrics that the US Federal Reserve gauges while deciding the policy rate plans. However, given the cooling figures, the central bank might move ahead with a dovish plan, which in turn could trigger a rally in the stocks and crypto market.
US CPI Eases To 2.5% In August
The latest data by the Labor Department showed that the much-awaited US CPI inflation came in at 0.2% in August, unchanged from the previous month’s figure and in line with the market expectations. On a year-over-year (YoY) basis, the inflation has cooled to 2.5%, down from the market expectations and from 2.9% in July.
Simultaneously, the Core CPI inflation, which excludes the food and energy prices, came in at 0.3%, following a 0.2% surge in July. On a YoY basis, the Core Consumer Price Index was at 3.2% for the last month, unchanged from the last month’s figure.
The cooling data appears to have boosted the market sentiment, further cementing bets over a potential rate cut by the US Federal Reserve this month.
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