US Inflation Stood At 8.3% In August, Stocks & Commodities Volatile

The US Labor Department released its monthly inflation report today and stated that Consumer Price Index Urban (CPI-U) stood at 8.3% in August. The inflation data decelerated from July's 8.5% gain. However, analysts expected that inflation will fall to 8.1% in the same month. The US Stock markets and commodity markets went volatile.

The US stock markets are under pressure today, after the higher-than-expected inflation data. S&P 500 was down by 3.90%, stood at 3,949.99, and Nasdaq Composite fell by 4.71%, stood at 11,688.93, at the time of writing. However, the US Dollar index stood at 109.82, up by 1.38%, till last traded.

Comex gold futures rate on the other hand fell to US$ 1,713.10/oz, falling by 1.58%, while Silver Comex futures rate fell to US$ 19.37 falling by 2.47%.

The US Federal Reserve is trying to keep the inflation rate under 2%, however, failing every time. The Fed has raised its interest rate multiple times this year aiming to control liquidity in the economy to restrict inflation. The central bank is also expected to hike its rate again in September by 75bps. The next Fed meeting will start on September 21. Analysts are waiting for the meeting to anticipate the upcoming policy measures. The stock markets and commodity markets can further be volatile after that. The US Fed will also focus on improving the employment scenario in the country to control inflation.