Core US inflation picks up, damping odds of big Fed cut

Text Size

• Small
• Medium
• Large

Underlying

US inflation

unexpectedly picked up in Aug on higher prices for housing and travel, undercutting the chances of an outsize Federal Reserve interest-rate cut next week.
The so-called core consumer price index – which excludes food and energy costs –

increased 0.3% from July

, the most in four months, and

3.2% from a year ago

, Bureau of Labour Statistics figures showed on Wednesday.

Economists see the core gauge as a better indicator of underlying inflation than the overall CPI.