US Core CPI Up 0.3% Month-on-Month in August; Odds of a 25 Basis Point Rate Hike Rise to 85%

After the latest CPI inflation data was released, the market further increased its bets that the Federal Reserve will raise interest rates at next week's meeting on Friday. Data released by the US Bureau of Labor Statistics shows that the US core CPI rose 0.3% month-on-month in August, higher than economists’ expectation of 0.2%. Currently, market pricing indicates an approximately 85% probability that the Federal Reserve will raise interest rates by 25 basis points at the meeting on September 15-16, compared to about 70% before the inflation data was released.