US inflation accelerates, setting stage for Fed hike
Underlying consumer price growth accelerated in the United States last month, strengthening the case for a rate hike at the Federal Reserve’s September meeting, and adding to the dollar’s upward momentum. According to data published by the Bureau of Labor Statistics this morning, the core consumer price index—with highly-volatile food and energy prices excluded—rose 0.3% in August, accelerating from a 0.2% rise in the prior month, and climbing 2.4% over the same period last year. The more-volatile all-items headline price measure climbed 0.4% from July as gasoline prices climbed, rising 3.4% in year-over-year terms. This combination topped the consensus estimates...