US annual CPI inflation declined to 8.3% in August

The US Bureau of Labor Statistics reported this Tuesday that inflation, as measured by the Consumer Price Index (CPI), decelerated to 8.3% on a yearly basis in August from 8.5% in the previous month. The reading was slightly above consensus estimates pointing to a decline to 8.1%.

The Core CPI, which excludes volatile food and energy prices, rose by 0.6% in August (0.3% anticipated) and climbed to 6.3% on yearly basis, up from 5.9% in July and 6.1% expected.

The US dollar catches aggressive bids in reaction to the stronger-than-expected CPI report and for now, seems to have stalled its recent sharp pullback from a two-decade high touched last week.

The US dollar index rose strongly after the release of US inflation data, higher than expected, to record 8.3%, while it was expected to record 8.1%, despite the strong drop in gasoline prices, which reached 20%, which raised hopes.

After the index fell below 108, to record lows below 107.7, it erased all losses and went to 108.56.