Donald Trump Says 'No Inflation!!!,' But This Economist Asks 'Says Who?' As August CPI Rises In Line With Estimates - SPDR S&P 500 (ARCA:SPY)

Economic Overview - The U.S. economy saw inflation acceleration in August, with a 2.9% annual headline inflation rate and a 3.1% core inflation rate, which excludes food and energy prices [2][5] - The Consumer Price Index (CPI) rose by 0.4% for the month and 2.9% over the past year, aligning with market expectations [5][6] Federal Reserve Response - Economists believe the inflation report strengthens the case for a Federal Reserve interest rate cut in September, despite some noting that the headline inflation was higher than expected [3][4] - The inflation data suggests a gradual approach to rate cuts rather than an aggressive pivot, as inflation remains above the Fed's 2% target [4] Contributing Factors to Inflation - The increase in inflation was primarily driven by the shelter index, which rose by 0.4%, along with a 0.5% increase in the food index and a 0.7% rise in the energy index, influenced by a 1.9% jump in gasoline prices [6] Market Reaction - Following the inflation report, the SPDR S&P 500 ETF Trust (SPY) rose by 0.83% to $657.63, while the Invesco QQQ Trust ETF (QQQ) increased by 0.58% to $584.08 [7]