By Alessandro Albano
Investing.com – opens trading higher on Tuesday and extends the eve’s gains after expected consumer price data showed higher consumer prices below economists’ forecasts.
The starts trading in positive 0.2%, while and are respectively up by 0.3% and 0.4%, with the latter recovering -0.1% on Tuesday where a return to the cyclic and value stocks.
The inflation rate in August accelerated to + 5.3% from 5.4% in July, with Investing.com consensus of 5.4%. The rate, although slightly colder, remains at the highs of the last 13 years.
On a monthly basis, it increased by 0.3% from 0.5% in July, below the + 0.4% expected by the market.
In detail, energy prices accounted for a large part of the increase in inflation, with the general index up by 2%, gasoline prices up by 2.8%, and food prices at + 0.4%. . Compared to 2020, energy prices increased by 25%, with fuels rebounded by 42%, and
Used vehicle listings, one of the main drivers of the inflationary narrative, fell by 1.5% on a monthly basis, but still remain 31.9% higher than a year ago.
“Policymakers continue to point out that tapering in 2021 remains their preference, but there has increasingly been a disconnect between what they are saying and what the data is saying,” Craig Erlam, senior analyst at Oanda, wrote in a statement. . “If we continue to see below expectations, will the FOMC still want to cut QE this year or could it be persuaded to hold on? That’s the real question,” he added.
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