Institution: U.S. core inflation monthly rate rises, ruling out the possibility of a significant rate cut by the Federal Reserve

ChainCatcher news, according to Informa Global Markets, the overall CPI in the U.S. for August slowed to 2.5% year-on-year, in line with expectations, marking the lowest level since February 2021. The core inflation annual rate remained at 3.2%, which also met expectations.

The market noted that the core inflation month-on-month rate was higher than expected, recorded at 0.3%, which prompted the USD/JPY to rise from 141.80 to 142.35. This data supports a 25 basis point rate cut by the Federal Reserve next week and should eliminate the possibility of a larger 50 basis point cut.