U.S. CPI rose 3.4% year-on-year in August, core CPI rose 0.3% month-on-month, and expectations for the Federal Reserve to raise interest rates increased.

China News Service, Washington, September 11 (Reporter Chen Mengtong) Data released by the U.S. Department of Labor on the 11th showed that the U.S. Consumer Price Index (CPI) rose by 3.4% year-on-year in August and by 0.4% month-on-month.

Bloomberg News analyzed that the above data show that against the backdrop of the ongoing war in Iran and tariff policies, there has been limited progress in cooling U.S. inflation. This also prompted the market to further increase expectations for the Federal Reserve to raise interest rates.

Looking at month-on-month data, the U.S. gasoline price index rose 3.9% in August, accounting for more than one-third of the overall price increase that month; the energy price index rose 2.1%; the housing cost index rose 0.3%, higher than the 0.1% increase in July.

Excluding volatile food and energy prices, the U.S. core CPI rose 0.3% month-on-month in August, higher than 0.2% in July; it rose 2.4% year-on-year.

The Wall Street Journal believes that this inflation report shows that the American people are still paying for high gasoline prices, which will further increase the pressure on the Federal Reserve to raise interest rates this month.

The Chicago Mercantile Exchange's FedWatch Tool shows that the market expects the probability of the Fed raising interest rates in September to be about 86.3%, up from 72.4% one day ago. (over)