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The consumer price index rose 0.4% in August and 3.4% year-over-year, matching forecasts but keeping inflation well above the Fed's 2% target
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The odds of a Federal Reserve interest rate increase at next week's policy meeting climbed to 90% on Friday after August inflation data came in broadly as expected, with Treasury yields holding near multiyear highs following a sharp bond selloff earlier in the week.
August's consumer price index came in at a seasonally adjusted 0.4% gain for the month, lifting the year-over-year figure to 3.4%, the Bureau of Labor Statistics reported Friday. Each figure aligned with the Dow Jones consensus estimate. Excluding food and energy, the core CPI measure advanced 0.3% for the month, coming in 0.1 percentage point ahead of what analysts had anticipated, while the 12-month core reading landed at 2.4%, matching consensus. Both headline and core readings remain well above the Fed's 2% inflation target.
