(Reuters) -U.S. consumer prices rose marginally in August, but underlying inflation showed some stickiness, which could discourage the Federal Reserve from delivering a half-point interest rate cut next week.
The consumer price index increased 0.2% last month after climbing 0.2% in July, the Labor Department said on Wednesday. In the 12 months through August, the CPI advanced 2.5%. That was the smallest year-on-year rise since February 2021 and followed a 2.9% increase in July.
Economists polled by Reuters had forecast the CPI gaining 0.2% and rising 2.6% year-on-year. Though inflation remains above the U.S. central bank's 2% target, it has slowed considerably.
MARKET REACTION:
STOCKS: U.S. stock index futures extended a slight loss to 0.35% pointing to a soft open on Wall Street BONDS: The 10-year U.S. Treasury yield rose to 3.676% and the two-year yield rose to 3.677%FOREX: The dollar index turned 0.11% higher and the euro turned down 0.09%