The bureau said a 0.5 percent rise in shelter prices was the primary contributing factor to August’s increase, following a 0.2 percent rise in July. The gain was offset by a 0.8 percent decline in energy prices.
CPI isn’t the US Federal Reserve’s favored gauge for inflation — that would be the personal consumption expenditures price index — but is still an important tool for tracking price movements and their impact on consumers.
The Federal Open Market Committee next meets from September 17 to 18, and is widely expected to lower interest rates. However, there is still some uncertainty surrounding how big the cut will be.
Gold saw volatility following the release, but bounced back to a breakeven point of US$2,514 per ounce. Silver also saw some volatility, but recovered to post a 0.87 percent gain to US$28.62 per ounce.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
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