The Latest Breaking News from Inflation

Increases in the costs of food, shelter and energy caused inflation to spike and increase the likelihood of an interest rate cut

Thursday's economic releases revealed an unusual mix of rising prices and a spike in jobless claims — a toxic cocktail that thrusts the U.S. economy into a stagflationary environment and places the Federal Reserve in one of the toughest positions a central bank can face.

US consumer inflation rose last month to its highest level since January, government data showed Thursday, although analysts believe that this is unlikely to deter the central bank from an interest rate cut next week.

New CPI update shows prices increased 2.9% over the last year, but Wall Street optimistic Fed will cut interest rates

As analysts widely expected, the European Central Bank kept its benchmark interest rate untouched on Thursday. This comes as the eurozone economy shows signs of resilience and inflation remains close to the ECB’s 2% target.

Markets fully expect a quarter-point rate cut on Sept. 17.

The Dow Jones index moves up following surprise inflation and jobless data.

Bitcoin (CRYPTO: BTC) is hovering around $114,000 on Thursday morning, with analysts eyeing further upside subject to a benign inflation data report to be released later in the day.

Investors and borrowers hoping for interest rate cuts from the Federal Reserve may soon get their wish.

Job weakness and softer inflation data push markets to fully price in a September Fed cut, but Powell’s decision could spark volatility if he resists.

September S&P 500 E-Mini futures (ESU25) are up +0.16%, and September Nasdaq 100 E-Mini futures (NQU25) are up +0.15% this morning as investors refrain from making any big bets ahead of key U.S. inflation data that is expected to shape expectations for the Federal Reserve’s interest rate path this year.