The consumer price index (CPI) rose 8.3% year-over-year and 0.1% over the prior month in August. Increased prices of food, shelter, and medical care services more than offset a sharp decline in gasoline prices. The stock market tanked following yesterday’s hotter-than-expected inflation data. All three major benchmark indexes logged their worst day since June 2020.
Matt Peron, director of research at Janus Henderson Investors, said, “The CPI report was an unequivocal negative for equity markets. The hotter than expected report means we will get continued pressure from Fed policy via rate hikes.”
