US inflation holds steady: CPI rises 0.2% in August 2024

The US Bureau of Labor Statistics has reported that the Consumer Price Index for All Urban Consumers (CPI-U) rose by 0.2% in August 2024, matching the increase seen in July.

Over the past 12 months, the index grew by 2.5% before seasonal adjustment.

The primary driver of the increase was a 0.5% rise in the shelter index, while the food index grew by 0.1%. The energy index saw a decline of 0.8% during the same period.

The CPI for all items, excluding food and energy, increased by 0.3% in August, driven by rises in airline fares, motor vehicle insurance, and shelter.

The index for used cars and trucks fell by 1%, contributing to the moderation of the overall increase.

Over the last 12 months, the CPI excluding food and energy rose by 3.2%, with the shelter index accounting for over 70% of this increase.

The food index showed minimal growth, rising 0.1% in August, while the energy index fell by 4.0% over the last year.

Notably, gasoline prices dropped by 10.3%, although electricity prices increased by 3.9% over the same period.

These CPI changes reflect a relatively stable inflation environment as the U.S. economy continues to adjust following recent economic fluctuations.

US Index futures dipped in recent trading

In recent trading, US index futures dipped, with S&P 500, Nasdaq-100, and Dow industrials showing moderate declines.

Treasury yields continued to fall, and the 10-year yield approached a 15-month low.

Oil prices rebounded by 2% after recent lows.

The Japanese yen strengthened following hints of potential rate hikes by the Bank of Japan, leading to a drop in the Nikkei 225.

European and Asian stocks were mixed, with Stoxx Europe 600 steady, and both the Shanghai Composite and Hong Kong’s Hang Seng Index declining.