On September 13, the US Bureau of Labor Statistics reported the country’s consumer price index (CPI) inflation rose 8.3% annually in August. The shortfall was lower than expected and market analysts expect the US Federal Reserve to continue with its aggressive rate hikes going forward.
According to the latest CPI report, US consumer prices are up 8.3% at an annualized pace of 8%
According to the most recent calculations, the US inflation numbers for August are in published by the US Bureau of Labor Statistics. The Bureau of Labor Statistics wrote on Tuesday that “the consumer price index (CPI-U) for all urban consumers rose 0.1 percent on a seasonally-adjusted basis in August after remaining unchanged in July — the last 12 months in the all-commodity index.” increased by 8.3 percent before seasonal adjustment.”
CPI 8.3% pic.twitter.com/wY7iYm26ox
— Sven Heinrich (@NorthmanTrader) 13 September 2022
Market strategists did not expect inflation to be that high as the report said that “economists expected a 0.1% decline in prices in August and a slower 8% annual pace.” Economist and gold bug Peter Schiff was quick to criticize the US dollar and the country’s fiscal policy. “Once again the market reaction [a] Inflation much higher than expected is wrong,” Schiff tweeted on Tuesday. “Inflation is here to stay, and inflation will get worse despite rate hikes due to more than a decade of monetary and fiscal policy. It is very bearish for the dollar and bullish for gold,” Schiff said. Told.
All four major Wall Street indexes (NYSE, Nasdaq, Dow Jones, S&P 500) fell significantly following the Bureau of Labor Statistics report published on Tuesday, amid worse-than-expected inflation reports. All the five precious metals (Gold, Silver, Palladium, Platinum, Rhodium) traded lower by 1.47% against the US Dollar during the last 24 hours. After posting some gains the day before, the crypto economy fell 5.8% against the dollar on Tuesday as well. During the last day, Bitcoin (BTC) is down 6% in USD value while Ethereum (ETH) is down 8%.
Bankrate.com analyst says CPI far from Fed’s 2% destination, gold bug Peter Schiff says sub-2% inflation rate is a thing of the past and will never return
Meanwhile, investors in Tuesday’s CPI data believe the Fed will be aggressive on raising the benchmark bank rate in the next meeting. Mark Hamrick, a senior economic analyst at Bankrate.com, thinks the inflation report for August won’t do much to convince the Fed to act next week. Hamrick expects the US central bank to limit the federal bank rate until inflation subsides.
“They want to take their benchmark rate [economically] restrictive zone and keep it there for a long time,” Hamrick said. “Waiting for what Chairman Jerome Powell said ‘should be compelling evidence that inflation is going down, corresponding to inflation returning to two percent’ … we are far from that destination.” Schiff thinks it’s absurd that people expect a 2% inflation rate to come back, and the gold bug wholeheartedly believes that the days of sub-2% inflation will always be a distant memory. In a tweet published on Monday, Schiff Stressed on,
Gone are the days of sub-2% inflation. There is no going back on the discrepancy experienced between the 2008 financial crisis and 2021. With QE the inflation chickens released by the Fed are finally home to settle down. The price increase experienced so far is just the beginning.
What do you think about the latest inflation report? Let us know what you think about this topic in the comment section below.
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