On September 13, the U.S. Bureau of Labor Statistics reported the country’s consumer price index (CPI) inflation jumped by 8.3% annually in August. This was a smaller than expected, and analysts predict that the U.S. Federal Reserve (US Federal Reserve) will keep increasing its rate of interest.
According to the latest CPI Report, US consumer prices rose at 8.3% annual pace.
The August U.S. inflation figures are available according to recent calculations publishedThe U.S. Bureau of Labor Statistics. The Bureau of Labor Statistics wrote on Tuesday that the “consumer price index for all urban consumers (CPI-U) rose 0.1 percent in August on a seasonally adjusted basis after being unchanged in July — Over the last 12 months, the all items index increased 8.3 percent before seasonal adjustment.”
CPI 8.3% pic.twitter.com/wY7iYm26ox
— Sven Henrich (@NorthmanTrader) September 13, 2022
Market strategists did not expect the inflation rate to be so high as reports note that “economists had expected prices to dip 0.1% in August over the month and slow to an 8% annual pace.” The economist and gold bug Peter Schiff was quick to criticize the U.S. dollar and the country’s fiscal policy. “Once again the market’s reaction to [a] much higher than expected inflation is wrong,” Schiff tweetedTuesday. “Inflation is here to stay, and will get much worse despite rate hikes, due to over a decade of inflationary monetary and fiscal policy. This is very bearish for the dollar and bullish for gold,” Schiff added.
Amid the worse-than-expected inflation report, all four major Wall Street indexes (NYSE, Nasdaq, Dow Jones, S&P 500) slid significantly after the Bureau of Labor Statistics report published on Tuesday. In the 24 hour period, all five precious metals saw losses against US dollars (gold, silver and palladium), with platinum falling 1.47%. The crypto economy also lost 5.8% on Tuesday, despite printing gains in the previous day. The bitcoin (BTC), which has lost 6% USD, and ethereum(ETH), 8% respectively over the past day.
Bankrate.com Analyst Says CPI Is Far From the Fed’s 2% Destination, Gold Bug Peter Schiff Says Sub-2% Inflation Rates Are a Thing of the Past and Will Never Return
Meanwhile, Tuesday’s CPI data has investors believing the Fed will be aggressive when it raises the benchmark bank rate at the next meeting. Mark Hamrick, a senior economic analyst at Bankrate.com, thinks the inflation report for August won’t do much to convince the Fed to act dovish next week. Hamrick predicts that the U.S. central banking will limit the Federal Bank Rate until inflation declines.
“They want to take their benchmark rate into [economically] restrictive territory and hold it there for longer,” Hamrick opined. “Awaiting what Chairman Jerome Powell has said must be ‘compelling evidence that inflation is moving down, consistent with inflation returning to two percent’ … We remain far from that destination.” Schiff thinks it is absurd that people expect the 2% inflation rate to return, and the gold bug wholeheartedly believes the days of sub-2% inflation will always be a distant memory. On Monday Schiff published a tweet. stressed:
Inflation below 2% is no more. There’s no going back to the anomaly experienced between the 2008 Financial Crisis and 2021. QE has finally brought the QE inflation chickens home. This is only the beginning of price increases.
Let us know your thoughts on the most recent inflation report. Please comment below on your views.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is intended for general purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.