U.S. core inflation for August comes in above expectations, prompting traders to raise the likelihood of a Federal Reserve rate hike next week. Multiple reports say traders price in about a 90% probability of a hike, up from roughly 70% before the inflation data was released.
The upward repricing reflects the market reaction to the U.S. core CPI reading, which focuses on inflation excluding certain volatile items. While the outlets emphasize the same core CPI surprise and the resulting shift in rate-hike expectations, they do not provide differing policy interpretations beyond describing the change in market odds following the data release.
