US inflation just about beat economists' expectations last month

Jessica Morris
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It comes after a string of disappointing US economic data yesterday (Source: Getty)

US consumer price growth came in slightly better-than-expected last month, according to official data released today.

The Labour Department said today that the consumer price index (CPI) rose 0.2 per cent last month after it remained unchanged in July. In the 12 months to August, the CPI swelled 1.1 per cent after increasing 0.8 per cent in July.

It beat economists' expectations for the CPI to increase 0.1 per cent last month and one per cent from a year ago.

It comes after a string of disappointing economic data yesterday further dampened expectations for the US Federal Reserve to raise interest rates for the second time since the financial crisis at its meeting on 30 September.

But analysts said that the better-than-expected inflation data would not be enough to prompt US Federal Reserve chair Janet Yellen and co. to increase borrowing costs.

"Today's data is unlikely to persuade Fed Chair Janet Yellen to pull the trigger on an interest rate hike just yet," Dennis de Jong, managing director at UFX.com, said.

"Analysts had speculated next week's Fed meeting could bring with it a rate increase, but a mixed bag of recent financial data could instead see Yellen and co. err on the side of caution.

"While there are reasons to be optimistic for the prospects of the US economy, a global backdrop of uncertainty paired with a contentious presidential race means we may have to wait until December for any movement for the Fed."

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