The latest data from the federal government showed that inflation rose 8.3% in August.

MONEY & BUSINESS: Investors pricing in 100 basis points rate hike by Fed after inflation report

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Hotter-than-expected inflation numbers released by the US government on Tuesday now have Wall Street girding for the possibility of what many had thought unthinkable — a massive, 100-basis-point rate hike at the Federal Reserve’s next policy meeting.

The CME FedWatch Tool, which analyzes the probability of interest rate movements before Fed meetings, on Tuesday indicated there was a 20% probability of a rate increase of 100 basis points.

The odds of a 75 basis points increase, meanwhile, dropped from 91% to 84% while the odds of a 50 basis points rate hike fell to 0% from 9%.

The Fed’s next policy meeting is scheduled for Sept. 20-21.

Consumer prices surged 8.3% in August compared with a year earlier — down from 8.5% in July but still higher than anticipated.

The CPI’s food index rose 11.4%, the largest year-over-year increase since May 1979.

In the past month alone, food prices jumped 0.8%.

The latest data from the federal government showed that inflation rose 8.3% in August.
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Housing, medical care, new cars, and home furnishings were also more expensive.

In June, inflation reached a four-decade high of 9.1%.

In the 12 months ending in August, core prices jumped 6.3%, up from 5.9% in July. Rents, medical care services and new cars all grew more expensive in August.

The latest data from the federal government showed that inflation rose 8.3% in August.
The inflation data sent the stock market tumbling on Tuesday.
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Investors on Wall Street ran for cover on Tuesday following the release of the federal government’s higher-than-expected inflation report.

The Dow Jones Industrial Average fell more than 800 points in early trading at the New York Stock Exchange while the tech-heavy Nasdaq index dropped by more than 450 points, or 3.9%.

The S&P 500 dipped by more than 3%.

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