Inflation is not going anywhere fast: CPI dropped 0.1% m/m and rose 0.1% y/y. Core CPI did rise 0.2% m/m as expected but only +1.8% y/y, the same as in July and below expectations. The positive number here is that real weekly earning rose 2.3% y/y, which is stronger than last month, but basically only 0.1% stronger than the average hourly earnings reported in the latest NFP.
The US dollar slips along with EUR/USD rising to 1.1250 and USD/JPY ticking down. The moves aren’t extreme as the countdown towards the Fed’s decision tomorrow is capturing markets’ minds.
Read the rest of the article US core inflation misses with 1.8% y/y – below expectations, USD slides