US August CPI inflation slightly above estimates at 8.3%

The United States reported its Consumer Price Index (CPI) inflation for August at 8.3 percent, slightly above estimates of 8.1 percent.

For the same month in the corresponding year, the country's CPI inflation stood at 8.5 percent. On a monthly basis, prices rose 0.1%, after a flat reading in July.

Its core CPI for August was reported at 6.3 percent compared to estimates of 6.1 percent. Excluding the volatile food and energy categories, the core prices jumped 0.6% from July to August, higher than many economists had expected and a sign of inflation's persistence.

US Futures turned negative after CPI inflation data came in slightly higher than estimates. Dow Futures fell 1 percent, S&P Futures fell 1.6 percent whereas Nasdaq Futures was down more than 2 percent.

Next week, most Fed watchers expect the central bank to announce a third straight three-quarter-point hike, to a range of 3 percent to 3.25 percent. The Fed’s rapid rate increases — the fastest since the early 1980s — typically lead to higher costs for mortgages, auto loans and business loans, with the goal of slowing growth and reducing inflation. The average 30-year mortgage rate jumped to nearly 5.9 percent last week, according to mortgage buyer Freddie Mac, the highest figure in nearly 14 years.

Chair Jerome Powell has said the Fed will need to see several months of low inflation readings that suggest price increases are falling back toward its 2 percent target before it might suspend its rate hikes.