TechFlow, Sept. 11 — According to Jinshi Data, the U.S. CPI rose more than expected in August, with the annual inflation rate posting its largest increase in seven months. However, these figures are not expected to prevent the Federal Reserve from cutting rates next week due to a weak labor market.
Data released Thursday showed that after rising 0.2% in July, the CPI increased 0.4% in August. Over the 12 months through August, the CPI rose 2.9%, the biggest gain since January and up from 2.7% in July.
Following recent pessimistic signals in the labor market, the CPI report could spark concerns about stagflation. The impact of U.S. President Trump's broad tariff measures has been gradual, but prices may accelerate in the coming months as companies have now exhausted their pre-tariff inventories. Business surveys have been indicating rising prices for some time.
Stephen Stanley, Chief Economist at Santander US Capital Markets, said: "There is substantial evidence that more tariff-related inflation is coming, although it may take several more months to fully transmit."
