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Inflation Surprise Keeps Investors on Their Toes, Positions the Fed for a 0.75% Rate Hike

So much for July’s relatively benign inflation readings beginning a trend. According to headline Consumer Price Index (CPI) inflation, prices rose 0.1% in August versus expectations for a modest decline. The rate of inflation over the previous year decelerated slightly to 8.3% from 8.5%. What really got the market’s attention, though, was “core” inflation, which …

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