{"id":492671,"date":"2022-09-13T15:34:32","date_gmt":"2022-09-13T12:34:32","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/inflation-hits-8-3-in-august-as-fed-mulls-super-size-rate-hike\/"},"modified":"2022-09-13T15:34:32","modified_gmt":"2022-09-13T12:34:32","slug":"inflation-hits-8-3-in-august-as-fed-mulls-super-size-rate-hike","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/inflation-hits-8-3-in-august-as-fed-mulls-super-size-rate-hike\/","title":{"rendered":"#Inflation hits 8.3% in August as Fed mulls super-size rate hike"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3bb929511e1\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3bb929511e1\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/inflation-hits-8-3-in-august-as-fed-mulls-super-size-rate-hike\/#%E2%80%9CInflation_hits_83_in_August_as_Fed_mulls_super-size_rate_hike%E2%80%9D\" >&#8220;Inflation hits 8.3% in August as Fed mulls super-size rate hike&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CInflation_hits_83_in_August_as_Fed_mulls_super-size_rate_hike%E2%80%9D\"><\/span>&#8220;Inflation hits 8.3% in August as Fed mulls super-size rate hike&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>US inflation rose by a higher-than-expected 8.3% in August despite falling gasoline prices \u2014 adding pressure on the Federal Reserve as it decides whether to impose another super-size interest rate hike.<\/p>\n<p>The August reading of the Labor Department\u2019s Consumer Price Index, a closely watched measure of the costs of goods and services, rose 0.1% compared to July \u2014 surprising economists who had expected a slight month-over-month decline.<\/p>\n<p>The higher-than-expected number was driven partly by stubbornly high prices for food and housing that continue to slam American households. Core inflation, which excludes volatile food and gas prices, rose 6.3% year-over-year \u2014 up sharply from the rate of 5.9% seen in June and July.<\/p>\n<p>The CPI\u2019s food index, meanwhile, surged 11.4%, its largest year-over-year increase since May 1979. Food prices were up 0.8% in the past month alone. Other household costs that rose included housing, medical care, new cars and home furnishings.<\/p>\n<p>Both Fed Chair Jerome Powell and other top officials at the central bank have made clear that they plan to continue with rate hikes until inflation begins to meaningfully recede. Prices are still well above the 2% range for inflation that policymakers deem acceptable.<\/p>\n<p>Ahead of the report\u2019s release, economists expected headline inflation in August to jump 8% year-over-year but decline by 0.1% compared to July. <\/p>\n<p>They predicted core inflation would rise 6% compared to last year and 0.3% compared to last month.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/august-inflation-report-03.jpg?w=1024\" alt=\"Fed Chair Jerome Powell\" class=\"wp-image-23839745\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/august-inflation-report-03.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/august-inflation-report-03.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/august-inflation-report-03.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Fed Chair Jerome Powell has pledged to maintain a hawkish outlook.<\/figcaption><figcaption><span class=\"credit\">AFP via Getty Images<\/span><\/figcaption><\/figure>\n<p>Headline inflation ticked lower as gas prices continued to recede from record highs reached in June. The national average price of a gallon of gas was $3.707 as of Monday, down from a peak of more than $5 in mid-June.<\/p>\n<p>But the price of other daily necessities such as food, rent and many consumer goods have stayed uncomfortably high for cash-str<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed Americans.<\/p>\n<p>The latest inflation report will factor into the conversation as Fed officials meet on Sept. 20 and 21 to discuss their next interest rate hike.<\/p>\n<p>During a speech last week, Powell said the Fed was wary of \u201cprematurely loosening policy\u201d and was \u201cstrongly committed to this project and we will keep at it until the job is done.\u201d He had previously warned of \u201csome pain\u201d for households due to the interest rate hikes.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/august-inflation-report-06.jpg?w=1024\" alt=\"Gas prices\" class=\"wp-image-23839746\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/august-inflation-report-06.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/august-inflation-report-06.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/august-inflation-report-06.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Gas prices have plummeted since hitting record highs in June.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>Meanwhile, Fed Vice Chair Lael Brainard said last week that the bank was \u201cin this for as long as it takes to get inflation down.\u201d<\/p>\n<p>Ahead of the August CPI report, investors were pricing in a whopping 86% probability that the Fed would hike its benchmark rate by three-quarters of a percentage point for the third consecutive time, according to CME Group data.<\/p>\n<p>The market saw just 14% probability of a smaller half-point hike \u2013a increase that would still be higher than normal.<\/p>\n<p>Stocks have moved lower in recent months in a sign that investors are skeptical about the Fed\u2019s ability to achieve a \u201csoft landing\u201d for the US economy. To achieve a soft landing, the Fed would need to lower inflation with rate hikes without upending the labor market or hurting economic growth.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/august-inflation-report-01.jpg?w=1024\" alt=\"NYSE traders\" class=\"wp-image-23839744\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/august-inflation-report-01.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/august-inflation-report-01.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/august-inflation-report-01.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Stocks have fallen steadily in response to Fed policy tightening.<\/figcaption><figcaption><span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>Several notable figures, including \u201cBig Short\u201d hedge fund sage Michael Burry and famed investor Jeremy Grantham, have warned a major stock market plunge is already underway.<\/p>\n<p>Meanwhile, President Biden, Treasury Secretary Janet Yellen and others are adamant that the US economy is not in a recession, despite GDP reports that have shown declines in two straight quarters.<\/p>\n<p>In a Sunday interview, Yellen pointed to ongoing strength in the labor market while arguing the underlying economy is healthy. At the same time, she acknowledged a \u201crisk\u201d that gas prices could surge again later this year on uncertainty related to the Russia-Ukraine war.<\/p>\n<p>\u201cThe Fed is going to need great skill and also some good luck to achieve what we sometimes call a soft landing,\u201d Yellen told CNN.<\/p>\n<p>\u201cI believe there is a path to accomplishing that,\u201d she added.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/09\/13\/inflation-hits-8-3-in-august-as-fed-mulls-super-size-rate-hike\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Inflation hits 8.3% in August as Fed mulls super-size rate hike&#8221; US inflation rose by a higher-than-expected 8.3% in August despite falling gasoline prices \u2014 adding pressure on the Federal Reserve as it decides whether to impose another super-size interest rate hike. The August reading of the Labor Department\u2019s Consumer Price Index, a closely watched&#8230;<\/p>\n","protected":false},"author":1,"featured_media":492672,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/august-inflation-report-comp-2.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[133195,5069,70550,70509,100568,70551,78738,127049],"class_list":["post-492671","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-9-13-22","tag-economy","tag-federal-reserve","tag-food","tag-gas-prices","tag-inflation","tag-jerome-powell","tag-the-fed"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/492671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=492671"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/492671\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/492672"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=492671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=492671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=492671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}