Inflation Report Has Doves Crying

Tuesday’s inflation report put the kibosh on the notion that, just maybe, the Federal Reserve policy makers might decide against increasing interest rates by another three-quarters of a percentage point next week.

The Labor Department reported that consumer prices rose by 0.1% in August from July, putting them 8.3% above their year-earlier level. Economists polled by The Wall Street Journal had forecast a 0.1% decline. Worse, core prices, which exclude food and energy items in an effort to better capture inflation’s trend, jumped 0.6% from July for an on-the-year gain of 6.3%. Economists were looking for a 0.3% gain.

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This article was written by and originally published on www.wsj.com