Increased over the expected inflation to USA In August, as well as applications for unemployment benefits were also reinforced, with the look now turning to the US Federal Bank meeting (Fed) next week, where after a while is expected to reduce the interest ratesas US President Donald Trump has been demanding for months.

In particular, Consumer Price Index has reached a seasonally customized increase of 0.4% on a monthly basis, at twice the previous month, placing annual inflation to 2.9%, increased by 0.2 percentage points from the previous month and to the highest level since January. Economists who participated in the Dow Jones survey expected corresponding levels at 0.3% and 2.9%.

Structural inflation, which excludes food and energy, increased by 0.3% in August, while on a yearly basis rose 3.1%, according to estimates. Fed officials consider the structural index as a better measure of long -term trends and the target of the Central Bank for inflation is 2%.

Market bets show 100% certainty that the Fed will reduce its interest rates next week, which are currently between 4.25% and 4.5%. However, there is a slight chance that the Fed deciding to deviate from its usual practice of reducing the interest rate by a quarter of the percentage and reduce it by half a unit, taking into account the labor market inability this year and low inflation levels.

The traders also find it almost certain that there will be another reduction in October and find it very likely that there will be a third decline in December.

Fed officials are closely monitoring inflation data, seeking indications of the impact of US President Donald Trump duty impacts. There has been some visible effect from the duties, although inflation data are relatively stable. The figures announced yesterday showed that producer prices fell by 0.1% in August.

Vehicles affected by duties have increased a monthly increase, with new vehicles rising by 0.3%. Used cars and trucks, which are generally not affected by tariffs, increased by 1%.

In the field of employment, the Ministry of Labor reported an unexpected increase in weekly applications for unemployment benefits to 263,000, adapted seasonally, for the week ended on September 6, higher than the estimation of 235,000 and increased by 27,000 compared to the previous period. The level of applications was the highest of the last four years.

If Fed officials had any doubt about interest rates, the report on unemployment applications may facilitate the issue.

Initial applications have reached their highest point since October 23, 2021, which suggests that employers may be cut in their workforce. Although recruitment has been slowed during the year, redundancies have also been limited, suggesting more a stable situation than a substantial weakening of the labor market, which President Jerome Powell has repeatedly described as “stable”.

The ongoing applications, which have a one -week delay, have remained unchanged at 1.94 million, but are close to their highest level since the end of 2021.