Finance

The August consumer price index matched general expectations on a headline basis at a 3.4% annual growth rate. However, core inflation, which excludes volatile food and energy costs, edged higher than anticipated by rising 0.3% month-over-month. The sticky core data prompted market participants to aggressively price in a 25-basis-point interest rate increase by the Federal Reserve.

Brent crude and West Texas Intermediate futures experienced volatile trading conditions following a temporary flow suspension on Saudi Arabia's East-West pipeline due to security incidents. While oil prices cooled slightly by the end of the week, they remained near multi-month highs above $100 per barrel, sustaining broad inflation anxieties.

Long-term borrowing costs for home buyers experienced renewed upward pressure, pushing the national average for a 30-year fixed-rate mortgage up to 6.99%. This marks the highest point for mortgage rates in more than 15 months. The surge reflects broader fixed-income trends, as bond investors increasingly prepare for a higher-for-longer monetary environment.