Fed rate cut a 'near certainty' as US inflation drops to 2.5% beating expectations

Shelter biggest contributor

US inflation fell to 2.5% for the year to August 2024, beating market consensus, which was expecting the headline figure to remain unchanged at 2.9%.

According to data from the US Bureau of Labor Statistics today (11 September), the Consumer Price index (CPI) rose 0.2% on a monthly basis, similar to July's reading. US economy adds 142,000 jobs in August as unemployment rate softens Core inflation, however, remained over the 3% mark at 3.2%, meeting market expectations. On a monthly basis, core CPI increased by 0.3% compared with 0.2% in July. Shelter was the biggest contributor to the inflation figures, adding 5.2%, while energy was the biggest detractor at 10.1%. According to Lindsay James, investment strategist at Quilter I...