The Clap
The consumer price index (CPI) increased 8.3% YoY in August 2022. Core inflation, which strips out volatile items such as food & energy, saw a 6.3% increase YoY.
The Deets
Sharp decreases in gasoline prices were not enough to offset inflation, as a rise in food, shelter, and medical care prices drove inflation up higher than expected for the month.
Why this Matters
Markets turned to negative territory immediately following the report, & all three major indices suffered heavy losses ranging from -3.94% to -5.16%.
What Now
With this CPI report coming above expectations, the Fed is now more likely to raise interest rates by 0.75%.
Inflation report sends stocks in freefall 👎
