Upside to Core CPI Means Fed Looks Set to Hike Next Week -- Market Talk

0914 ET - The upside surprise to core CPI in August means the Fed looks set to hike next week, according to a note from Capital Economics. Core CPI came in at 0.3% month-over-month, while economists polled by WSJ expected an increase of 0.2%. Capital Economics says that in analyzing the CPI components that feed into the PCE calculation, the monthly estimate implies that annual core PCE inflation would rise from 3.3% in July to 3.4%. "In short, core PCE inflation is moving in the wrong direction and that should be enough for the centrists on the FOMC such as Governor Christopher Waller to support a hike next week," the note says. The PCE is the Fed's preferred method of measuring inflation. (jessica.coacci@wsj.com)

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September 11, 2026 09:14 ET (13:14 GMT)