Han de Jong, chief economist at ABN AMRO, points out that the US headline inflation, on the CPI measure, eased from 1.8% yoy in July to 1.7% in August and was largely thanks to the easing of energy prices.

Key Quotes

“The core-CPI measure amounted to 2.4% yoy, up from 2.2% in July, the third consecutive month of accelerating inflation. The Fed’s preferred inflation measure is core PCE inflation, which only stood at 1.6% yoy in July.”

“The acceleration of core-CPI inflation was largely caused by a faster increase in medical care costs: 4.3% yoy. Medical care has an 8.9% weight in the core basket, so it is responsible for some 0.3%-points of the yoy change of the core CPI. Health insurance has a weight of only 1.5% in the core basket. But health insurance is becoming more expensive very rapidly. In August, it was up a staggering 18.6% yoy, also responsible for 0.3%-points of the 2.4% yoy rise of the core CPI.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD: Buyers and sellers jostle around 0.6600 as coronavirus keeps the driver’s seat

AUD/USD carries the New York session’s downbeat sentiment forward while taking rounds to 0.6600 at the start of the Asian session on Wednesday. While the coronavirus-led risk-off keeps the risk barometer under pressure, weakness in the US dollar restricted the pair’s losses.


USD/JPY consolidates losses but bears keep the baton amid coronavirus fears

USD/JPY consolidates losses to 110.20 amid the initial Asian session on Wednesday. That said, the pair portrayed the broad risk-off, led-by coronavirus fears, while declining for the third day in a row during the previous day.


Dollar domination set to continue, with or without coronavirus fears

The coronavirus-related fall in US bond yields has been weighing on the US dollar. Nevertheless – and despite worries coming from Markit's PMIs – the greenback is set to gain more ground.

Read more

Gold: Pares early losses, still in the red below $1650 level

Gold extended previous day's intraday retracement slide from multi-year tops and witnessed some follow-through long-unwinding trade on Tuesday.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info