[U.S. August Core CPI MoM Recorded at 0.3%, YoY Dropped to 2.4%]
The U.S. seasonally adjusted core CPI month-on-month for August recorded 0.3%, the highest since May this year, exceeding the market expectation of 0.2%, with the previous value at 0.2%. The U.S. unadjusted core CPI year-on-year for August dropped to 2.4%, the lowest since April 2021, in line with expectations, with the previous value at 2.5%. (Source: Jin10)
AI Interpretation: The rebound in the core inflation month-on-month rate to a yearly high directly reveals the stubborn nature of price stickiness in the service sector. Although the year-on-year rate has dropped to a multi-year low, the unexpected month-on-month increase has completely shattered the illusion of a smooth decline in inflation. This data combination weakens market expectations for aggressive rate cuts in the short term, forcing investors to reassess the necessity for the Federal Reserve to maintain high interest rates. Policymakers are likely to adopt a cautious stance based on this data, and the market's pricing of accommodative monetary policy in the short term will face significant adjustments.
