Foreign media: US August inflation may rise due to tariffs, markets still expect the Fed to cut rates
The US Consumer Price Index (CPI) for August is expected to rise by 0.3% month-on-month, higher than 0.2% in July, with a year-on-year increase of 2.9%, the highest in seven months. The core CPI, excluding food and energy, is also expected to rise by 0.3% month-on-month, with a year-on-year increase of 3.1%. The main drivers of rising inflation come from gasoline, food, and tariff transmission. Coffee prices have seen a two-and-a-half-year high annual increase, while beef prices have risen sharply due to tariffs and droughts. A shortage of farm labor has also pushed up food prices.
Analysts believe that the early impact of tariffs was delayed as companies consumed old inventories, but as inventory levels decline, the tariff effect will be transmitted more quickly to the consumer end. Despite this, the market still generally expects the Federal Reserve to implement a 0.25 percentage point rate cut next week, as weak demand may limit companies' ability to continue raising prices.
Original article: www.toutiao.com/article/1842964799881223/
Statement: This article represents the views of the author himself.