U.S. core inflation rate rises, ruling out the possibility of a significant interest rate cut by the Federal Reserve

According to Informa Global Markets, the overall US CPI slowed down to 2.5% year-on-year in August, which was in line with expectations and the lowest level since February 2021. The core inflation rate remained at 3.2%, also meeting expectations. The market noted that what was higher than expected was the monthly core inflation rate, recording 0.3%, prompting the dollar to rise from 141.80 against the yen to 142.35. This data supports a Fed's interest rate cut of 25 basis points next week and should rule out the possibility of a larger cut of 50 basis points.