US August CPI 2.9% y/y vs 2.9% expected

Headline CPI:

• CPI +2.9%
• Prior was +2.7
• m/m reading at +0.4% vs +0.3% expected (unrounded consensus was +0.36%)
• Month-over-month unrounded % vs +0.287% prior

The rest of the numbers are largely in line.

Core CPI:

• Core CPI +3.1% vs +3.1% expected
• Core CPI m/m +0.3% vs +0.3% expected (some forecasts were +0.27%)
• Core unrounded +0.346% vs +0.228% m/m prior (almost rounded to +0.4%)
• Real weekly earnings -0.1% vs +0.4% prior (revised to +0.1%)

The core unrounded number gives this report a touch of a hawkish bent and that likely kills the chance of a 50 basis point cut. I suspect the market was also leaning dovish after yesterday’s lower PPI.

This article was written by Adam Button at investinglive.com.