US August CPI Growth Expected to Accelerate, Strengthening Expectations of a Federal Reserve Rate Hike

According to foreign media reports, after gasoline prices rebounded following two consecutive months of declines, U.S. consumer price increases in August are expected to accelerate, which will reinforce financial market expectations that the Federal Reserve may raise interest rates next week. The U.S. Department of Labor will release the August CPI report this Friday. Previously, several key components of Thursday’s PPI report showed strong performance. Economists have stated that with oil prices returning to above $100 per barrel, inflation will remain high and further expand. Other economists believe that due to import tariffs, particularly the recent tariffs imposed on the United States’ major trading partner Canada, price pressures will persist.