Economic See-Saw: The Tug of War Between Rising Costs and Market Pressures

In August, U.S. consumer prices went up by 0.6%, which was the biggest increase in 14 months. This was mostly due to higher oil prices, but other measures of inflation remained less worrying. Core inflation, which doesn't include energy and food, went up a little bit, but the Federal Reserve thinks this rate is a better predictor of future inflation. Their current outlook suggests that inflation will slowly move toward their 2% target, and they may stop raising interest rates if housing and labor costs stabilize.

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