US inflation grows above expectations in August

The US inflation grows above expectations in August due to higher prices in the residential sector and healthcare. The higher-than-expected value is a signal that the price increase in the world’s largest economy is approaching the target level of 2%, which was set by the Federal Reserve. The US consumer prices rose by 0.2% MoM against forecasts for a 0.1% inflation. The year-on-year change in August is more serious in a positive direction, reaching 1.1% in expected growth of 1%.

Stabilizing energy prices, declining impact of the strong dollar and growth in wages help to accelerate inflation.

The inflation data come in very important point, which happened less than a week before the next meeting of the Federal Reserve monetary policy on September 21. And while most analysts and economists expect the Fed to leave interest rates unchanged, rising inflation is an argument for tightening monetary policy.

However, the increase in inflation is driven by the cost of rent and medical services. Outside these two categories there is no significant change in the dynamics of consumer prices.

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