US August CPI 3.4% vs 3.4% expected

AI summary

<ul><li><a href="https://investinglive.com/news/us-july-cpi-y-y-vs-3-4-expected/" rel="follow">Prior </a>was 3.4%</li><li>Unrounded +3.397% vs +3.365% prior</li><li>CPI m/m +0.4% vs +0.4% exp</li><li>Prior CPI was +0.1%</li><li>Unrounded CPI m/m +0.396% vs +0.074% prior</li></ul><p>Core readings:</p><ul><li>Core y/y 2.4% vs 2.4% expected</li><li>Prior core was 2.5%</li><li>Core unrounded +2.446% y/y</li><li>Core m/m +0.3% vs +0.2% expected</li><li>Prior m/m +0.2%</li><li>Unrounded +0.318% m/m vs +0.215% prior</li><li>Core goods +0.11% m/m vs +0.2% prior</li><li>Real weekly earnings +0.2% vs 0.0% prior (revised to +0.1%)</li><li>Supercore +0.511% m/m vs +0.189% prior -- highest since Jan</li><li>Supercore +3.022% y/y vs +2.843%</li></ul><p>Ahead of the report, the market was pricing in a 68% chance of a rate hike in September and 43.7 bps in hikes this year. USD/JPY was trading at 154.01 ahead of the report. The intial market reaction was buying the US dollar on the slight beat on core m/m.</p><p>After the report, the market is pricing in an 82% chance of a hike next week.</p><p class="font-claude-response-body break-words whitespace-normal">Key sub-components:</p><ul><li>Owners' equivalent rent: +0.2% vs +0.3% prior </li><li> Rent of primary residence: +0.2% vs +0.3% prior </li><li> Motor vehicle insurance: -0.8% vs -0.3% prior </li><li> Airfares: +2.7% vs +2.2% prior </li><li> Used cars: +0.4% vs +0.4% prior </li><li> Apparel: 0.0% vs +0.1% prior </li><li> Medical care: -0