Inflation Figure Boosts Odds of Rate Hike Next Week -- WSJ

By Angus Berwick

The consumer price index rose 3.4% in August from a year ago, increasing the chances of a Federal Reserve rate hike next week to nearly 90% in traders' eyes.

The inflation figure came in the same as the prior month and as economists surveyed by the Wall Street Journal expected. But the core CPI, an inflation figure that excludes volatile food and energy prices, by some measurements was a tad stronger than expected.

The figures confirmed a narrative among investors that inflation has remained too high for the Fed to keep rates at their current level. Traders recently were putting an 89% chance on a rate increase next week.

Stocks rose, a signal that investors like the idea of a rate hike tamping down inflation. Treasury yields were mixed, with short-term yields higher and the 30-year bond yield lower.

Keeping upward pressure on prices: The cost of diesel today hit $6 a gallon for the first time. Brent crude futures were volatile, surging overnight to nearly $110 a barrel before falling back to about $105.

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(END) Dow Jones Newswires

September 11, 2026 14:47 ET (18:47 GMT)