🚨 US INFLATION ACCELERATES — FED HIKE RISK RISES US inflation picked up in August, strengthening the case for another Fed rate hike next week. Headline CPI rose 0.4% M/M and 3.4% Y/Y, while core CPI increased 0.3% M/M. Gasoline was a key driver, with oil back above $100/barrel adding to inflation concerns. Markets had been pricing roughly a 70% chance of a 25bp hike ahead of the report. Higher inflation + resilient employment + elevated oil prices = increasing pressure on the Fed to tighten.(*Walter Bloomberg)