What happen? Inflation Warms Up Again In America In August!

<p>&nbsp;Inflation posted its biggest monthly increase of the year in August as consumers faced higher prices for the energy sector and various other goods.</p><p><br /></p><p>The consumer price index, which measures costs across a wide range of goods and services, rose 0.6% for the month, and was up 3.7% from a year ago. Economists polled by Dow Jones had expected increases of 0.6% and 3.6%, respectively.</p><p><br /></p><p>However, excluding volatile food and energy, core CPI rose 0.3% and 4.3%, respectively, compared to estimates of 0.2% and 4.3%. Federal Reserve officials focus more on the core because it provides a better indication of the direction of inflation over the long term.</p><p><br /></p><p><br /></p><p>Energy prices were the biggest contributors to the increase this time around, rising 5.6%, an increase that included a 10.6% jump in gasoline. Food prices rose 0.2% while protection costs, which make up about a third of the CPI weight, rose 0.3%.</p><p><br /></p><p>The stock futures market initially fell following the report then bounced back for now. Treasury yields were higher overall.</p><p><br /></p><p>The surge in inflation has hit workers' wages. Average real hourly earnings declined 0.5% for the month, although they were still up 0.5% from a year ago, the Labor Department said in a separate release.</p><p><br /></p><p>The US dollar index which measures the US dollar currency against six major currencies traded down to a trading level of 104,294 after the CPI report was released.</p>