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Tuesday’s inflation reading wasn’t what anyone was hoping for.
The consumer price index rose 8.3% in August year-over-year, down slightly from July but more than the 8.1% economists had expected. If you take out the price of food and energy, core prices rose 0.6% from July to August — double what economists had forecast.
The surprisingly ugly CPI report undercut investors’ confidence and sent markets tumbling. The Dow fell more than 1,200 points, or 4%, while the S&P 500 and Nasdaq plummeted 4.3% and 5.2%. It was Wall Street’s worst day since June 2020.
And, as the last major economic data release before next week’s Federal Reserve policy meeting, Tuesday’s report all but…