U.S. Core Inflation Holds Steady at 3.4% for a Second Month, Fueling Oil-Risk Trade
Core consumer prices rose 0.4% month-to-month in August while crude oil prices fell, creating mixed signals for investors amid steady equity gains.
U.S. core inflation remained unchanged at an annual rate of 3.4% in August, matching the July figure but marking a two-month period of stability without acceleration or deceleration. The month-over-month increase was 0.4%, following a smaller 0.1% jump in July. These figures were reported by the Bureau of Labor Statistics. Simultaneously, falling crude oil prices weakened investor sentiment despite gains in major U.S. stock indices that ended Friday on a positive note. Gio Saluzzo, co-founder and managing director at Themis Trading, described the inflation numbers as stubborn and noting they aligned with expectations while satisfying no one, whether optimists expecting a market rise or pessimists foreseeing a decline. The persistent uncertainty surrounding interest rate trajectories continues to hang over the financial landscape. The lack of data on specific upcoming events or predicted interest rate paths prevents further detailed speculation.
