US: Annual core CPI rises to 1.7% in August vs. 1.6% expected

• Core inflation in the US came in higher than expected in August.
• US Dollar Index is rebounding toward 93.30 after the data.

Inflation in the US, as measured by the Consumer Price Index (CPI), edged lower from 0.6% to 0.4% on a monthly basis in August, the report published by the US Bureau of Labor Statistics showed on Friday. On a yearly basis, the CPI rose from 1% to 1.3%. 

Further details of the publication revealed that the annual core CPI, which strips the volatile food and energy prices, rose to 1.7% and came in slightly higher than the market expectation of 1.6%.

Market reaction

With the initial market reaction, the US Dollar Index rose modestly and was last seen losing 0.1% on the day at 93.25.