The US Labour Department reported that its consumer price index rose marginally by 0.1 per cent in August, on a monthly basis. Expectations were for consumer prices to move lower by 0.1 per cent. The modest increase in consumer prices came as higher prices for accommodation, food and medical care contributed for an increase, while lower fuel prices contributed to a lower inflation level. A sharp 10.6 per cent decline in vehicles’ fuel prices contributed to a 5.0 per cent slump in energy prices, while food prices increased by 0.8 per cent. Accommodation and medical care prices rose by 0.7 per cent and 0.8 per cent respectively. Paul Ashworth, chief US economist at Capital Economics, said that the faster-than-expected core price increase “confirms” that the Federal Reserve will raise interest rates by at least 75 basis points during the next meeting, aiming to slow down inflation down towards the Fed’s two per cent target. The Federal Reserve raised the target range for the fed funds rate by 75bps to 2.25%-2.5% during its July 2022 meeting, the fourth consecutive rate hike, and pushing borrowing costs to the highest level since 2019. In the meantime, data published by Eurostat, on...