Fed rate cut a 'near certainty' as US inflation drops to 2.5% beating expectations

Shelter biggest contributor

Cristian Angeloni
clock • 2 min read

US inflation fell to 2.5% for the year to August 2024, beating market consensus, which was expecting the headline figure to remain unchanged at 2.9%.

According to data from the US Bureau of Labor Statistics today (11 September), the Consumer Price index (CPI) rose 0.2% on a monthly basis, similar to July's reading. US economy adds 142,000 jobs in August as unemployment rate softens Core inflation, however, remained over the 3% mark at 3.2%, meeting market expectations. On a monthly basis, core CPI increased by 0.3% compared with 0.2% in July. Shelter was the biggest contributor to the inflation figures, adding 5.2%, while energy was the biggest detractor at 10.1%. According to Lindsay James, investment strategist at Quilter I...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Higher household bills push UK inflation to 3.5%

Higher household bills push UK inflation to 3.5%

Up from 2.6%

Cristian Angeloni
clock 21 May 2025 • 2 min read
BoE chief economist Huw Pill warns cutting UK interest rates too quickly has 'upside risks'

BoE chief economist Huw Pill warns cutting UK interest rates too quickly has 'upside risks'

MPC voted five to four to cut rates

Patrick Brusnahan
clock 20 May 2025 • 2 min read
UK set for EU deal after 'breakthrough' -reports

UK set for EU deal after 'breakthrough' -reports

Third big deal following India and the US

Patrick Brusnahan
clock 19 May 2025 • 1 min read
Trustpilot