CPI Report: Consumer Prices Rise 2.9% Annually In August, In Line With Expectations

U.S. consumer prices rose in line with expectations in August amid increasing economic uncertainty due to President Donald Trump's tariff war.

According to data from the Bureau of Labor Statistics (BLS), the consumer price index (CPI) rose 2.9% on an annual basis before the seasonal adjustment. 

On a seasonally adjusted basis, CPI rose 0.4% in August, after rising 0.2% in July.

Core CPI, which excludes food and energy, rose 0.3% in August, in line with a Dow Jones estimate, according to MarketWatch data.

The index for shelter rose 0.4% in August, and was the primary reason for the increase in the all-items basket during the month. The food index also rose 0.5%, while the energy index increased by 0.7%, driven by a 1.9% rise in the gasoline index.

Regarding the impact of President Donald Trump's tariffs on inflation, former White House economist Jared Bernstein stated in a CNBC interview that the levies are being reflected in prices, but not yet significantly.“The tariffs are in the numbers, but they're certainly not jumping out hair on fire at this point,” Bernstein said, according to a CNBC report.

Following the release of CPI data, the benchmark 10-year Treasury yield fell two basis points to 4.005%, while the two-year Treasury yield fell four basis points to 3.49%.

Meanwhile, U.S. equities gained in Thursday's pre-market trade. At the time of writing, the SPDR S & P 500 ETF (SPY), which tracks the S & P 500 index, was up 0.17%, while the Invesco QQQ Trust (QQQ) rose 0.12%. Retail sentiment around the S & P 500 ETF on Stocktwits was in the 'bullish' territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was up 0.31% at the time of writing.

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